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Export Dumping

Export dumping happens when a country or a company exports its products to another country at a price significantly lower than the cost of production or the price charged in the home market.

This is often seen as an unfair trade practice because it can harm domestic industries in the importing country by undercutting their prices and potentially driving them out of business.

Dumping can distort competition and lead to trade tensions between countries.

For example, in the 2010s, China became a dominant player in the solar panel industry. Chinese manufacturers were accused of export dumping as they flooded international markets with solar panels at prices that were allegedly below their cost of production.

In the past, some countries have faced accusations of export dumping in the textile and clothing industry. For instance, a country might export textiles to another country at prices that are unsustainable for the local manufacturers in the importing country.

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