Distortions from the application of fair trade measures by Australia

This paper discusses the resource utilisation and trade distorting impact following the application of anti-dumping and countervailing measures by Australia.' Anti-dumping measures are imposed on dumped imports which have been found to be injuring an industry in Australia. Dumped imports are those goods sold by an exporter below the price prevailing in the domestic market of the country of export. The injury to the industry in Australia caused by the dumped imports is said to be eliminated by the application of the anti-dumping measure, either in the form of an import duty or an undertaking by the exporter to raise the export price of the imported product. Likewise, countervailing measures are imposed on subsidised imports found to be injuring an industry in Australia.Countervailing measures are similar to anti-dumping duties in theirapplication. These measures are founded on the application of international public trade laws, notably Article VI of the General Agreement on Tariffs and Trade 1947 (GATT), relating to "unfair" trading practices.< The principal question which this paper addresses is: Has the application of these economic laws been "fair" and wealth creating"?