Dumping explained: definition and effects 

 
 

Dumped products pose a threat to European firms and workers, but do you know how it works? Find out in our quick guide to dumping.

What is dumping?

Dumping is when foreign firms dump products at artificially low prices in the European market. This could be because countries unfairly subsidise products or companies have overproduced and are now selling the products at reduced prices in other markets.

Why is it a bad thing?

Dumping is a form of unfair competition as products are being sold at a price that does not accurately reflects their cost. It is very difficult for European companies to compete with this and in the worst cases can lead to firms closing and workers losing their job.

What is the EU doing to tackle it?

The EU has a number of trade defence instruments that it can use to fight unfair trade practices, which includes anti-dumping legislation.

One way to tackle dumping is to charge anti-dumping duties on these products.

Read more about how it works in our article on the EU’s anti-dumping policy.

Dumping poses a threat to global trade ©BELGA/BELPRESS/L.VIDAL