Anti-Dumping Measures: Easing the Transition to Free Trade

Many businesses in ASEAN countries continue to adjust to the changes brought about by the elimination of import duties, in the context of both the ASEAN Economic Community and other bilateral and multilateral free trade agreements. While reductions in barriers to trade-tariff or non-tariff can open foreign markets to domestic producers, they also bring additional competition for domestic producers in their home markets.

In a world without barriers to trade, the idea is that each country would produce those goods in which it has a comparative advantage. While the economic efficiency this brings benefits everyone in the long term, the transitions are not always smooth. To address problems caused by dumping, countries can assess anti-dumping duties, subject to certain regulations.