Dumping can be understood as the practice of exporting goods at a price lower than the normal price in the domestic market. Dumping is an unfair trade practice that can cause imbalance to the domestic economy.
Anti-Dumping measures are imposed against goods imported from foreign countries which are considered by the Ministry of Commerce’s Department of Foreign Trade as dumping that causes injury to the domestic industry of Thailand.
Thailand’s Anti-Dumping measures are governed by an Anti-Dumping and Countervailing Act, B.E. 2542; the key measures are enacted in accordance with the World Trade Organization (“WTO”)’s Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1999 (“GATT” or “Anti-dumping Agreement”), including the imposing of Provisional Measures, Investigation for imposing Anti-Dumping measures, Price Undertakings, Anti-Dumping Duties, Sunset Clause, Review and Appeal.
Moreover, Thailand’s Anti-Dumping and Countervailing Act covers measures against unfair subsidies (“Countervailing measures”). Subsidies refer to any financial benefit or contribution granted by the public sector of the exporting country to increase the exportation of goods to another country or reduce the importation from another country. Subsidized exporters can distribute their goods in Thailand at artificially lower price than the actual cost, giving them an unfair advantage over local industries that are not subsidized.
Countervailing measures, including the Investigation process for imposing Countervailing duties, Sunset Clause, Review and Appeal, are similar to Anti-Dumping measures; domestic industries can file a petition with the Ministry of Commerce’s Department of Foreign Trade for an investigation on actions suspected to be subsidies that cause injury to them and impose an appropriate countermeasure. However, the price undertakings on subsidized import between the Department of Foreign Trade and the exporter must also be approved by the exporting country. Provisional Measures on subsidies cannot be enforced for longer than 4 months.