Corporate conflicts in the process of Ukraine’s European Integration
19.06.2006 14:11
Commentary from Dmytro Vydrin, Founder of the European Integration and Development Institute.
I’d like to draw your attention to the fact that there is no such thing as an automatic antidumping mechanism as an economic phenomenon in its pure form. I’ll explain what I mean: one might have the impression that economics, unlike politics, is objective. In fact, it is not always true and antidumping cases support this assumption.
Antidumping cases are subjective in the same manner that politics is. The same as, for instance, the selection criteria for joining NATO or the European Economic Union. Turkey, for example, has managed to enter these organizations, though some other, more developed, countries were turned down. Antidumping cases are political rather than economic mechanisms. They are used to weaken competitors or make them submissive. Those who have strong lobbyists take advantage of those cases and the West figured it out a long time ago. Note also that the activation of antidumping investigations, for instance against Ukrainian manufacturers of rolled steel by the USA, happened first of all because some authoritative law firms had been stimulated by local steel manufacturers. However, when Ukrainian metal producers brought on equally authoritative law firms, these investigations melted away.
It is clear that if a company has a dozen friends among US Senators or MPs of leading European countries, there will be no antidumping investigations and if a local company has equally friendly MPs it will be easier to initiate antidumping investigations against their foreign competitors.
Large international airlines which also have similar lobbyists will always lean on their foreign competitors, as we currently observe. In relation to this, I have a piece of advice for our airlines -and not only for them – do not save money on PR. Properly organized and skilfully executed PR is the best way to uphold your interests in cases like these. And of course, don’t save on lawyers. A lot depends on their competence. I’ve mentioned the importance of lobbyists.
Unfortunately, we’re used to saving on lawyers and lobbyists. But an effective combination of an effective PR company, judicial support and powerful lobbyists’ efforts is the best recipe against antidumping investigations.
