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Antidumping a problem in international trade

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Antidumping a problem in international trade

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade ing: A Problem in International Trade’’, he probably did not imagine that the system put in place to eliminate the effects of dumping (i.e. antidumpin

g) would surge to be a problem. However, as we celebrate the 100ih anniversary of the first antidumping law. the situation is quite different from wha Antidumping a problem in international trade

t Viner could observe at the beginning of last century. And if his economic analysis on the nature and causes of dumping is still valid, since the ear

Antidumping a problem in international trade

ly 1990s the debate has centered on the widespread use and consequences of antidumping, which is just a modem protectionist tool used by many countrie

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade statistics pertaining to the total caseload. One striking result is the important role of new users of antidumping, with negative consequences not onl

y for tradit ional users.Keywords: Antidumping; trade liberalization; GATT; WTOJEL classification: F13; Fl-1‘This paper has been prepared for the conf Antidumping a problem in international trade

erence “The 100th Anniversary of Anti-Dumping Regulation" organized by the Leverhulrne Centre for Research on Glolmlisation and Economic Policy (GEP)

Antidumping a problem in international trade

at the University of Nottingham (UK) in June 2004. 1 would like to thank my discussant, Jim Dulling, and all the conference participants for wry usefu

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade ged. Contact information: Department of Economics & CentER, Tilburg University, PO Box 90153, 5000 LE Tilburg, The Netherlands. E-mail: M.Zanardtfiuvt

.nl“Export dumping on a continued and .systematic scale has been a common practice of American manufacturers since at least the late eighties of the l Antidumping a problem in international trade

ast, century." Viner (1923, page 80)1 IntroductionWhen in 1923 Jacob Viner wrote the book "Dumping: A Problem in International Trade”, he probably did

Antidumping a problem in international trade

not imagine that the system put in place to eliminate the effects of dumping, i.e. antidumping (AD), would surge to be a problem. However, as we cele

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade m a mostly unused and cumbersome trade policy instrument to become the preferred way in which industries in many countries seek and obtain protection

from their governments.1 And if Viner's economic analysis on the nature and causes of dumping is still valid, since the early 1990s t he debate has ce Antidumping a problem in international trade

ntered on the widespread use and consequences of AD.Indeed, the issue hag dramatically evolved so that the discussion on AD is now independent from th

Antidumping a problem in international trade

e one about dumping, as a the result of an increasingly long literature that points out that the occurrence of dumping is not anymore the defining asp

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade (2003) emphasize how AD “is simply a modern form of protection” since “all but AD's staunchest supporters agree that AD has nothing to do with keeping

trade “fair”...” and as such it has lost its connection with the dumping literature. For this reason, the academic debate on AD is now almost complet Antidumping a problem in international trade

ely disjoint from the discussion about the motives and extent of dumping although AD’s supporters advocate its use in order to discourage unfair (i.e.

Antidumping a problem in international trade

, dumping) business practices.The literature on the effects of AD is long both in its theoretical and empirical dimensions. At the risk of simplificat

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade her arrangements are often enforced to eliminate the dumping margin (i.e., the fact that exporters sell cheajMT, or lielow cost, in the exporting mark

et than in their domestic market).1(i.e., in the case of predatory dumping). Given that the empirical occurrence of these cases is very rare (Shy. 199 Antidumping a problem in international trade

8), the general presumption is that AD Is nowadays used to the advantage of industrial interests with negative impacts on consumers’ welfare and compe

Antidumping a problem in international trade

tition.The theoretical conclusion that AD is (almost always) welfare reducing is supported by various estimates of these costs. Gallaway Ct al. (1999)

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade nited States (US) would have increased welfare in US by almost S i billions.2 St udies on specific AD cases by the US International IFade Commission (

1995), De Vault (1996), and Anderson (1993) reach the same qualitative conclusions that the; net effect of removing AD orders would greatly benefit th Antidumping a problem in international trade

e US economy, as AD duties result in a gain in producers’ welfare that is smaller than the consumers’ loss. Together with these results, many other pa

Antidumping a problem in international trade

pers illustrate; the distortions generated by the existence and use of AD laws where a non-trivial role is played by the political influences in the a

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade this paper, a comprehensive dataset on the worldwide use of AD taken from Zanardi (2004) is used to illustrate the extent and the historical developm

ent of the problem jx>s Antidumping a problem in international trade

points to possible explanations in the widespread enacting of these laws. The data on the caseload of initiations and impositions from the perspective

Antidumping a problem in international trade

of initiating and targeted countries docs show the incidence of this protectionist tool and how it has been transformed from an elitist instrument us

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade of AD (i.e., extent of use per US dollar of imports and exports) allow to conduct more reliable cross-country comparisons, which once again reveal th

e important role of the new users of AD.For completeness, it should be mentioned that AD might serve an important role2The countervailing law offsets Antidumping a problem in international trade

export subsidies but is much less frequently used than the AD law.2by allowing further trade liberalization where otherwise? countries would not agree

Antidumping a problem in international trade

on tariff concessions in multilateral negotiations. This is the view put forward by various developed countries like the US in its communication to t

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade de liberalization” and that it is “necessary to the maintenance of the multilateral trading system.” Although there is no study that tries to quantify

the impact of AD on liberalization, the long literature on the negative consequences of AD puts in doubts that such positive effects do exists?In sum Antidumping a problem in international trade

mary, this paper is focused on the assessment of the AD phenomenon and its historical development. It is not. intended to be a survey of dumping, nor

Antidumping a problem in international trade

of AD as the long literature would take too much space. Moreover, recent surveys by Niels (20(H)) ami Blonigen and Pritsa (2003) already nicely summar

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade laws and its correlation with legal developments in GATT and WTO dispositions. Section 3 presents some data to quantify the use of AD and its outcome'

s, 'rhe analysis and comparisons with impart and export intensities are discussed in section 4. Conclusions follow in section 5.2 The Reality of Antid Antidumping a problem in international trade

umpingThe very first AD law was passed in Canada in 1904. After a century, the count of countries with an AD law reached 98 by the eml of 2003 with th

Antidumping a problem in international trade

e list including developed and developing countries as well as countries in transition? And this number is certainly destined to increase as Georgia,

Antidumping: A Problem in International TradeMaurizio Zanardi* Tilburg University & CentER38504AbstractWhen in 1923 .Jacob Viner wrote the book “Dumpi

Antidumping a problem in international trade onist tool that is widely applied across a broad range of countries.Figure 1 probably describes best the extent and development of the AD phenomenon.

* *3 Miranda et al. (1998) provide anecdotal evidence for Mexico, Argentina, and Brazil where trade liberalization was accompanied by an increased use Antidumping a problem in international trade

of AD. However, it is not clear that, the causal link goes from AD to trade liberalization.‘The fifteen members of the European Union are counted ind

Antidumping a problem in international trade

ividually. See the Appendix for the definitions of t he various categories of countries.3It shows the cumulative number of countries with an AD law to

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