Abstract:
Earlier GATT and now WTO is regulatory institution established under United Nations which regulates the international trade activities providing detailed regulatory mechanism with aim to enhance the international trade activities and to improve the individual life style and betterment of the economy of under developed states through trade activities. Most Favored Nation (MFN) is amongst the primary principles provided under the regulatory regime and preferential trade agreement is a concept of MFN adopted to obtain objective of WTO however the same has been surfaced as a major factor contributing towards dumping by abuse of MFN principle. This research analyzed the regulatory regime and the concept of dumping and impacts of dumping on the under developed states. MFN principle has been discussed in detail in connection with its abuse for dumping under the garb of a legal principle. Concept of dumping and anti-dumping legislative developments has also been discussed comparatively. The research encompasses the analysis of data available and critical analysis to answer the research statement.
Developed states using principle of MFN has been observed to create monopoly through dumping and destroying the domestic industry of importing state consequently causing damage to economy of the under developed states. The scheme of states involved in dumping has been discussed in detail along with the anti-dumping measures and legislation advanced by states to protect their national interests by securing national industry and national economy.
