How is trade unfair

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. What Is an Unfair Trade Practice? Dumping is an unfair trade practice where products are exported at prices below their production costs. The EU and the US subsidise some produce and goods, dumping them on developing countries while concurrently keeping international prices at low levels. Millions of poor farmers in developing countries cannot compete against produce dumped in their countries at low prices.

For a long time, rich countries have been urging poor countries to open their markets, through the World Bank, International Monetary Fund IMF and international trade agreements, partly in order to dump their subsidised produce in these markets. They are now utilising international trade agreements to eliminate all trade barriers. Affluent and powerful multinational corporations pressure their governments into increasing their levels of protection for intellectual property rights.

Particular unfair trade practices concerning provision of giveaways. Giveaways mean economic benefits, including goods that a business owner accords to its customers upon transaction of goods or services.

Price reduction, discounts or after-sales service that is usually recognized as commercial practices are not regarded as giveaways. When competition among businesses becomes unfair due to the use of economic power, such as excessive provision of giveaways, in contrast to ordinary competition based on price, quality and service, it becomes difficult to guarantee promotion of fair competition among businesses.

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New York: Palgrave. Orbie, J. Why Europe urgently needs to rethink its unfair trade deals with Africa Posted on 4 Apr Mark Langan.

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