Eco-Dumping

Eco-Dumping

The act of exporting a good from a country with new or poorly enforced environmental protection laws. These laws generally add to the cost of producing a good, so the export likely is much less expensive in an importing country than domestically produced goods of the same type. This can result in a large profit for the exporter. In addition to the costs to the environment (and the accompanying ethical questions), this can be detrimental to domestic business in the importing country. Many jurisdictions attempt to counteract dumping by setting up tariff barriers. See also: Dumping.
References in periodicals archive ?
To detect eco-dumping activities, one would have to employ the autarky prices.
Applying these results to the eco-dumping problem yields the following propositions.
Summarising the results of this part of the paper, we can conclude that strategic behaviour in international trade does not necessarily lead to eco-dumping, independently of the definition applied.
In this context, one of the Community's most urgent tasks must be to establish harmonised standards for recovery and pre-treatment facilities in order to ensure high-level recovery, to bring differing levels of environmental protection in the Member States into line with each other and to prevent eco-dumping and distortion of competition.