Market Disruption

Summary of Market Disruption

A condition in which foreign imports of a given product increase in quantity so rapidly as to cause, or threaten to cause, material injury to a competing domestic industry. A finding of market disruption before the International Trade Commission may result in retaliatory actions against the offending products or the countries from which they are imported.

(Main Author: William J. Miller)

Market Disruption and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Market Disruption: A situation arising when a surge of imports of a particular product causes sales of domestically produced goods to decline to such an extent that the domestic producers and their employees suffer major economic reversals. The existence of market disruption is the basis for escape clause actions providing temporary import relief. As specified in Section 406 of the Trade Act of1974 (Sec.lV), market disruption is considered to exist within a US industry whenever imports “are increasing rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat thereof’ to that industry.

In the United States

For information about Market disruption in the context of international trade, click here

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