Mounting Evidence of Japanese Dumping

http://www.reuters.com/article/newsOne/idUSTRE54B20T20090512?sp=true

As reported in the linked article, Nissan today has announced a $2.4 billion loss in their fourth quarter, and they forecast a larger loss for the coming year.  Yesterday it was Toyota announcing an $8.6 billion loss.  In previous weeks it was Sony.  Recently, Toyota announced that, in spite of the fact that they have lost thousands of dollars on every Prius sold in the U.S. to date, they will reduce the price by several thousand dollars more.  

The Japanese strategy for combatting unemployment is becoming quite clear – they are blatantly “dumping” products on the U.S. and European markets in order to sustain market share.  “Dumping” is the practice of selling products in foreign markets at below-cost, a practice expressly forbidden by the World Trade Organization. The reason for the losses in these Japanese companies is irrelevant, whether it’s due to the falling dollar, rising yen, volumes declining in a recession, or whatever.  It’s still dumping and it’s an unfair trade practice.

The time has come for the Obama administration to acknowledge what’s taking place and demand that Japanese companies raise prices.  Failing that, the U.S. should immediately lodge a complaint with the WTO and, if the WTO doesn’t act swiftly, the U.S. should immediately impose stiff tariffs on all Japanese products.

One Response to Mounting Evidence of Japanese Dumping

  1. Randy says:

    Japanese? At the place I work at, Hyundai (and its subsidiary Kia) are all the rage. But your mention of the Prius raises another issue: is there a decent return to be found on R&D?

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