Monday, August 14, 2006

Dumping, anyone?

So, the United States Department of Commerce is going to impose a 118.63% antidumping duty to Indonesian's paper producer, PT Tjiwi Kimia, along with another 40.55% duty due to subsidy enjoyed by the company. Sounds typical.

If I were to draft a response letter, this is what I would send to DC:

Dear Sir,

It is saddening to see how you sacrifice economic efficiency just to please some lousy producers in your country. Americans have been enjoying cheap papers from Indonesia. But because some American producers can not compete with us, you are going to make the paper price higher there. You are going to force your people to buy expensive paper from inefficient producers. How thoughtful. Let us tell you, Sir. You should thank us for dumping cheap papers to your country.

Of course you complain about subsidy we give to our paper producers. Yes, you are right on this one. Subsidy is evil. Just like your subsidy to your farmers. Let's stop all subsidy, would you?


Dumping is good. Antidumping policy is ridiculous. Subsidy is bad.

3 comments:

Arya said...

Dumping is good? Need to be clear with the object -- the "for whom" -- in the sentence.

Aco said...

Sorry, Arya. This little skeptic inside me keeps telling me: dumping is always good for ... the economy...:-D Just like price war...

johnorford said...

i agrre with you, dumping is good ;)

btw, i wouldn't object to the paper tariff -- if it comes from non-sustainably forested wood. think about the externalities!! (that's all I think about these days ;))