ImplicationsOfDumping Agricultural Products InAsia

The AoA has become one of the most contentious agreements because of its fundamental flaws of subjecting subsistence agriculture to trade liberalisation and increasing the role of the corporation. Its impact on the livelihood and survival of the small Asian farmers has been most illustrative of the basic arguments against further agricultural trade reform. But apart from these key issues, the AoA and other trade agreements in agriculture that tend to complement the AoA have also institutionalised dumping – the unbridled and unprecedented influx of cheap agricultural products in Asia and elsewhere, which has hastened the erosion of the agrarian economies and their capacity for future industrialisation. Dumping is the practice of a firm, wherein the firm exports at a price that is lower than the price of a similar product in the exporting country. The difference between the export price and the domestic price (the price in the exporting country) is called the dumping margin. It is also considered dumping when the export price is a lot lower than the combined cost of production, marketing expenses and a reasonable profit.


Title: ImplicationsOfDumping Agricultural Products InAsia
Authors: Pesticide Action Network Asia Pacific
Tags: agriculture
small scale farmers
food security
Date: 11-Jan-2007
Publisher: Pesticide Action Network Asia Pacific
Category Type: Reports
Appears in Sub-Collections:Environmental Pollution

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