Today’s Cambodia Daily (print only) reports that the government is finalizing a draft law on price dumping.

“Dumping” is a form of predatory pricing, where foreign exporters sell products below costs into a country, aiming to drive domestic producers out of business. Once the domestic competition has gone under, the dumpers can jack up prices and recoup their losses. In the end, domestic production is hurt, and the country is reliant on more expensive foreign imports.

Anti-dumping laws, like the draft under consideration, allow governments to temporarily raise tariffs or restrict imports to counteract the dumpers. While dumping can do serious harm, in many countries there’s a strong tendency for domestic producers to accuse foreign competitors of dumping, when in reality they’re being undercut simply because the foreign producers are more efficient.

According to the draft, a new committee will be setup to investigate dumping claims and take countervailing measures. The article indicates the drafters hope to send it to the Council of Ministers by the end of the year.

 

Advertisements