Dumping is good

. . . is the topic of my latest Trade Tripper column in this Friday-Saturday issue of BusinessWorld. Excerpts:

"That’s why the WTO’s 2009 World Trade Report is getting much discussion among trade law practitioners. Because ironically, according to the report, considering the increase of anti-dumping cases, dumping apparently is good for the importing country:

'What are the effects of dumping on the economic welfare of the importing country? Economic theory suggests that, with the possible exception of predatory dumping, all other instances of dumping either increase, or at worst, have an ambiguous effect on, the economic welfare of the importing country. Of course, for the most part, economic literature has treated dumping as an example of the exercise of market power. But within this context of imperfectly competitive markets, dumping may increase efficiency in resource allocation. In most circumstances, the welfare of the importing country increases as a result of dumping, as consumers and users of the product benefit from lower import prices, even though the reason for the reduction in price (the dumping) may vary.'"