Economic theory considers dumping as a matter diverging competition levels and market structures. This article investigates the dumping, injury – for which the lesser duty rule is relevant – and profitability in relation to competition. Conclusion is that competition in exporting countries seems less and profits exceed those in the European Community (EC) and are higher than attributed by Community institutions to a non-injurious price in injury margin calculations. Target profit imputations have been analyzed. Introduction is recommended of objective yardsticks for the determination of target profits, which takes into account the capital employed in the business, profit in country of export, and past injury incurred.
Global Trade and Customs Journal