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Is the GATT/WTO Biased Against Agricultural Products in Unfair International Trade Investigations?

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  • James C. Hartigan

Abstract

The unfair‐trade codes of the GATT/WTO are better suited to addressing complaints from manufacturing than agriculture. This is because the seasonality and uncertainty of agricultural output, together with substantial use of contracting with factors of production, makes sales at a loss a rational business practice during certain times of the year. This cost dumping induces the use of constructed values in the calculation of dumping margins by the US, which typically generates high duties. The model provides for cyclical dumping arising as a supply phenomenon. This contrasts with cyclical dumping in manufacturing that is induced by demand fluctuations.

Suggested Citation

  • James C. Hartigan, 2000. "Is the GATT/WTO Biased Against Agricultural Products in Unfair International Trade Investigations?," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 634-646, November.
    • Handle: RePEc:bla:reviec:v:8:y:2000:i:4:p:634-646
    DOI: 10.1111/1467-9396.00247
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    Cited by:

    1. James Rude & Jean-Philippe Gervais, 2009. "Biases in Calculating Dumping Margins: The Case of Cyclical Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 122-142.
    2. Basyah, Mohammad & Hartigan, James C., 2007. "Analyst earnings forecast revisions and the persistence of antidumping relief," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 383-399.
    3. Colin A. Carter & Caroline Gunning‐Trant, 2010. "U.S. trade remedy law and agriculture: trade diversion and investigation effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 97-126, February.
    4. James C. Hartigan, 2015. "It’s baaaack— zeroing, the US Department of Commerce, and US — Shrimp II (Viet Nam)," RSCAS Working Papers 2015/67, European University Institute.

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