Anti-dumping
- (Photo: EU Commission)
Anti-dumping
In principle, dumping exists when a producer sells a product at a cheaper price when exporting to another country than on its home market.
The EU may impose a special levy on imports when foreign companies sell cheap products into the EU. Big companies often ask the EU Commission to propose an anti-dumping levy against their foreign competitors. The eventual levy is fixed by the Council by a qualified majority vote. Anti-dumping levies are paid to the EU, previously the European Community, as so-called own income.
Even quite small levies have results because their main effect is to limit imports and increase domestic prices. The extra cost is then paid by the consumers and is not visible in official budgets.
See Lisbon Treaty Art. 44 TFEU.
Links
http://ec.europa.eu/trade/issu......ules/anti_dumping/index_en.htm
