Protecting local industry or free competition?
Every few years, a complaint is lodged by a local manufacturer alleging that imported products are being sold in Israel at dumped prices and are causing injury to the domestic industry. Where the relevant conditions are met, the Trade Remedies Commissioner at the Ministry of Economy and Industry may initiate an investigation in accordance with the rules of the World Trade Organization (WTO) and the Trade Levies and Safeguard Measures Law, 1991. At the conclusion of the proceedings, a decision is made as to whether a duty should be imposed on the imports in order to protect domestic production.
As a general principle, the Israeli economy promotes free competition, imports and lower prices for consumers. At the same time, dumping is recognized under international trade rules as a practice that may constitute unfair trade and cause injury to domestic industry. In essence, dumping occurs where a product is exported to Israel at a price lower than its normal price in the exporting country. In certain circumstances, this may result from a foreign manufacturer’s desire to sell surplus production at reduced prices, penetrate the Israeli market or drive local manufacturers out of it.
In these proceedings, the firm may represent Israeli manufacturers seeking protection from dumped imports or importers liable to be adversely affected by the investigation or the imposition of a duty. The representation may include assistance throughout the investigation, preparing responses to questionnaires, presenting data and legal arguments, appearing before the competent authorities, and representing clients in court proceedings.
Anti-dumping duty is the best-known and most commonly applied trade remedy. Other measures intended to protect domestic industry include countervailing duties and safeguard measures.