THE IMPACT OF TRADE LIBERALIZATION AND DUMPING ON LOCAL INDUSTRIES IN NIGERIA

Abstract

Trade Liberalization and Dumping have a complex and often contradictory relationship in international trade. While Trade Liberalization has been the cornerstone of international trade policy, aiming to reduce barriers and increase economic cooperation among nations. However, the reduction of tariffs and quotas has also led to concerns about unfair trade practices, such as dumping, its impact on domestic industries and the role of international organization in regulating these practices. Dumping occurs when company exports goods to another country at a price that is lower than the normal value of the goods, often causing harm to the domestic industry of the importing country. Anti-dumping measures such as tariffs and quotas can be used to protect domestic industries from unfair trade practices. The WTO provides a framework for countries to address trade disputes and ensures that practices are fair and transparent. This paper adopted doctrinal research methodology where primary and secondary sources of law were evaluated. This paper concluded inter alia that the relationship between trade liberalization and dumping is paradoxical. While the former seeks to foster open markets, it can also create an environment where the later becomes a more attractive and effective business strategy. This, in-turn, can lead to the implementation of anti-dumping measures, which, if misused can become a new form of protectionism, ultimately counteracting the spirit of free trade. The paper recommended among others that countries should implement effective anti-dumping measures that are consistent with WTO rules.