Reference no: EM131470546

Question: Dumping. A newspaper printing press system is over a hundred feet long, stands four or five stories tall, and weighs two million pounds. Only about ten sales of these systems occur each year in the United States. Because of the size and cost, rather than replace its system, a newspaper may update by buying "additions." By the 1990s, Goss International Corp. was the only domestic maker of this equipment in the United States and represented the entire U.S. market. Tokyo Kikai Seisakusho (TKSC), a Japanese corporation, makes the systems in Japan. In the 1990s, TKSC began to compete in the U.S. market, requiring Goss to cut its prices below cost.

TKSC's tactics included offering its customers "secret" rebates on prices that were ultimately substantially less than the products' actual market value in Japan. The goal was, according to TKSC office memos, to "win completely this survival game" against Goss, the "enemy." Goss filed a suit in a federal district court against TKSC and others (including a German manufacturer whose name is reflected in the case title), alleging illegal dumping. At what point does a foreign firm's attempt to compete with a domestic manufacturer in the United States become illegal dumping? Was that point reached in this case? Discuss. [Goss International Corp. v. Man Roland Druckmaschinen Aktiengesellschaft, 434 F.3d 1081 (8th Cir. 2006)]