Soviet Dumping

AN INTERNATIONAL PROBLEM

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AHE problem of Soviet dumping which isnowagitating
the international world of business is no new problem.
 It has been in the background for several
years past and has been recognised both by business men
and economists as a serious and growing menace.
To-day, however, the problem has assumed such proportions
 that it dominates the economic stage. The Soviets are
increasing and intensifying their dumped exports by every
means in their power. Larger and larger quantities of every
class of goods are being thrown on to the world markets and
sold at whatever price they will fetch. And, in consequence,
the normal level of world prices is disastrously shaken.
Soviet dumping, in fact, threatens to undermine the
whole fabric of international commerce and economics,
because it disregards and denies the very principles on
which it is based. The Soviets deny that there is such a
thing as dumping on the part of the US.S.R. and they have
marshalled a strong array of arguments to prove the case.
The question then that must first be settled is, ©“ What is
dumping ? 7 and secondly, “ Can it be applied to presentday
 Russia? ”
The Soviets themselves are ready to reply. They start
with the assumption that the real and only definition of
dumping is the sale of commodities below the cost of production.
 On the basis of this they maintain that:

“ Under the Socialist order of Soviet economy and under
the unique conditions of Soviet foreign trade, Soviet Russia
cannot be accused of dumping. The simple calculation of
cost of production vis-d-vis price, applicable to capitalist
countries, cannot be applied to Soviet Russia, where the
State is, both internally and externally. the omnipotent
price regulator.”

In other words, they urge that since the Soviet Government
 is in a position to disregard entirely the cost of pro-