Boomerang Clause

Boomerang clause in Global Commerce Policy

In this regard, boomerang clause is: Article 91.2 of the Treaty of Rome deals with dumping practices by member states of the European Economic Community towards other member states during the 12-year transition period (1958-1970) leading to full implementation of the Treaty. Protective measures against dumping were possible during the transition period, but the European Commission decided what action to take. The entries on trade policy in the Encyclopedia are here. One of the possibilities open to companies found to have dumped products was to take them back. The entries on trade policy are here. Article 91.2 made this possible with minimum friction. The entries on trade policy are here. It states that products originating or having been entered for consumption in one member state that are exported to another member state had to be admitted free of all charges or quantitative restrictions when they were re- imported into the territory of the first member state. The Article did not prohibit dumping, but it reduced the incentive for doing so. The entries on trade policy are here. In 1970 the members of the European Community stopped using anti-dumping action against each other. See also competition policy and anti-dumping measures.[1]

Boomerang clausein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Boomerang clause” entry (OAS)

See Also