Signs of Dumping You Should Know: A Guide for Exporters in 2026

Antidumping is one of the most important topics we must know as exporters in today's international market. Dumping, in reality, consists of selling products below their normal price or even below their cost of production, with the goal of eliminating competition and controlling the market. This unfair commercial practice is prohibited by World Trade Organization (WTO) rules and can have devastating consequences.

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What is dumping and why should you care as an exporter?

‍In the world of international trade, understanding the concept of dumping is fundamental to protecting our interests as exporters. The practice of dumping can seriously affect our competitiveness and long-term profitability.

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Clear and updated definition of dumping‍

Dumping is a situation of international price discrimination where a product is sold in the importing country at a price lower than the one at which it is sold in the market of the exporting country. According to the World Trade Organization (WTO), dumping is formally defined as "introducing a product into the market of another country at a price below its normal value."

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This commercial practice generally seeks to gain market share and eliminate competitors in the foreign market. To determine if dumping exists, the "normal value" (price in the market of the exporting country) is compared with the "export price" (price in the market of the importing country).

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Difference between dumping and legitimate competition‍

We must not confuse dumping with legitimate competitive strategies. The key lies in the intentionality and the methods employed. While legitimate competition is based on real advantages of efficiency, innovation, or economies of scale, dumping uses artificially low prices to eliminate competitors.

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A fall in unit export prices does not constitute proof of dumping by itself, as it can be the result of technological innovation or industrial rationalization. Therefore, only through a detailed investigation of production conditions can it be concluded whether a product is exported below its normal value.

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Relationship between dumping and international trade‍

Dumping artificially distorts the international market and produces harmful effects on the world economy. This practice not only harms producers in the importing country, but also exporters from third countries who cannot compete with artificially low prices.

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Consequently, affected countries can implement antidumping measures to protect their national industries. These measures include special tariffs or quotas on imported products sold at unfairly low prices. It is important to highlight that these actions do not constitute protectionism but legitimate mechanisms to guarantee fair competition.

As exporters, we must be alert to these practices and know the available defense mechanisms, as we could be victims of unfounded dumping accusations or suffer unfair competition in our target markets.

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8 dumping signals every exporter should know‍

Identifying dumping practices can be complicated, but there are revealing signals that will help us detect them. As exporters, we must be attentive to these indicators to protect our commercial interests.

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1. Import prices below the cost of production‍

The most evident signal of dumping occurs when imported products are sold at prices below their cost of production. This frequently happens when exporting companies receive subsidies or try to gain market share at the expense of their immediate profitability. According to the WTO, dumping is verified when the price of a product in the importing market is significantly lower than the price in the domestic market of the exporting country.

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2. Sudden drop in local market prices‍

An abrupt decrease in national market prices without clear economic justification could indicate the presence of dumping. This drop is usually directly related to the massive entry of foreign products at artificially low prices, which forces local producers to reduce their prices to remain competitive.

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3. Unusual increase in imports from a specific country‍

The sudden increase in the volume of imports from a specific country can be a clear signal of dumping. For example, in Spain a 5% increase in general imports has been recorded, with notable increases in imports from Peru (38.6%), Canada (25.7%), and the United States (9.4%).

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4. Loss of market share without commercial explanation‍

Unexplained loss of market share is a worrying symptom that can indicate unfair competition. This phenomenon occurs when a company cannot remain competitive against artificially low prices, resulting in a decrease in its sales proportion.

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5. Complaints from distributors or customers about unfair prices‍

Claims from distributors or customers about unusually low prices of imported products are an important early warning. These complaints usually arise when the price difference is so notable that it raises suspicion even among consumers.

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6. Changes in the profitability of key products‍

An unexpected decrease in the profitability of specific products, especially those that compete directly with imports, can signal the presence of dumping. Competing with products sold at artificially low prices reduces margins and affects financial viability.

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7. Presence of subsidies or state aid in the exporting country‍

Government subsidies can facilitate dumping by allowing companies to sell below their real production costs. According to recent reports, the number of subsidy measures nearly tripled between 2009 and 2020, exceeding 8,000 interventions.

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8. Difficulty competing even with operational efficiency‍

If despite implementing improvements in production efficiency we still cannot compete on price, we are probably facing a case of dumping. When not even the most efficient companies can match import prices, the suspicion of unfair competition intensifies.

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How to confirm if you are facing a case of dumping‍

Suspecting dumping is the first step, but confirming it requires a methodical and precise analysis. To determine if we are really facing an unfair practice, we need to follow a technical process established by international regulations.

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Comparison between normal value and export price‍

The confirmation of dumping begins with a fair comparison between two key values. The normal value is the price at which the product is sold in commercial operations within the exporting country. On the other hand, the export price represents the value at which a foreign producer sells the product to the importing country.

This comparison must be made at the same commercial level, normally "ex-factory," and on sales made on dates as close as possible. Furthermore, we must consider adjustments for differences in sales conditions, taxation, quantities, and physical characteristics.

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Analysis of dumping margins‍

The dumping margin corresponds to the amount by which the export price is lower than the normal value. It is normally calculated by:

• A comparison between weighted averages of the normal value and the export prices
• A transaction-by-transaction comparison

A "de minimis" margin is considered when it is less than 2% of the export price. If we exceed this threshold, we could be facing a legitimate case of dumping that would justify corrective measures.

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Collection of evidence and commercial documentation‍

To file a solid antidumping complaint, we need to collect:

• Invoices, offers, and price lists documenting both the normal value and the export price
• Evidence about the affected product, countries involved, and importers
• Detailed estimate of the harm caused, with timeframes, items, and geographic areas

The WTO warns that "the determination of the existence of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility." Therefore, objective documentation is indispensable for any effective legal action.

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What to do if you detect dumping: steps and measures‍

Once dumping signals are detected, taking immediate action is crucial to protecting our market position. There are established formal mechanisms we can follow to seek effective solutions.

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Contact commercial authorities or chambers of commerce‍

Before initiating any formal procedure, it is advisable to contact the Antidumping Service of the European Commission. This first approach will allow us to receive specialized guidance on how to proceed. Local chambers of commerce can also provide us with valuable information on the steps to follow.

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How to file an antidumping complaint‍

The complaint must be submitted in writing to the European Commission, providing sufficient evidence of dumping and the harm caused. For it to be admitted, we need to represent at least 25% of the affected Community industry. The Commission has 45 days to assess whether there are sufficient elements to open an investigation.

It is essential to include in our complaint:

• Documentary proof of dumping
• Evidence of the injury caused to the industry
• Clear demonstration of the causal link between both

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Provisional and definitive measures that can be applied‍

If the preliminary investigation confirms dumping, the Commission will establish provisional duties for a period of 6 months, extendable by 3 additional months. Importers will have to deposit guarantees for the payment of these duties.

After concluding the investigation, definitive duties can be imposed with a usual duration of 5 years. These measures must be published in the Official Journal of the EU for effective application.

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Importance of antidumping law in trade defense‍

Antidumping law constitutes a fundamental tool to combat unfair commercial practices. These measures do not represent protectionism, but legitimate mechanisms endorsed by the WTO to guarantee equitable conditions of competition.

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Conclusion‍

Dumping represents a real threat for exporters in today's international market. Throughout this article, we have analyzed the unfair practices that can affect our competitiveness and profitability. Certainly, identifying dumping signals is fundamental to protecting our commercial interests.

The eight signals we have detailed will allow us to detect when we are facing unfair competition. For example, prices below the cost of production or sudden drops in local prices are clear indicators we must not ignore. Additionally, an unusual increase in imports from a specific country should set off our alarms as exporters.

Once dumping is detected, we must act quickly. First, by gathering solid evidence documenting both the normal value and the export price. Then, by filing a formal complaint before the competent authorities like the European Commission. This process, although complex, is essential to defending our market position.

It is important to highlight that antidumping measures do not constitute protectionism, but legitimate mechanisms to guarantee fair competition. In fact, these instruments are endorsed by the World Trade Organization precisely to avoid artificial distortions in the international market.

As exporters towards 2026, understanding these concepts will allow us not only to protect ourselves from unfair practices, but also to avoid falling into unfounded dumping accusations. In the end, our goal must always be to participate in international trade based on legitimate and transparent competition, where success is determined by quality, innovation, and efficiency, not by unfair commercial practices.

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