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Total strangers or soul mates? - antidumping and competition policies in Latin America and the Caribbean

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  • Guash, J. Luis
  • Rajapatirana, Sarath

Abstract

As a result of trade reforms in the 1980s and 1990s Latin American and Caribbean countries became more open than at any time since World War II. However, these countries have recently begun to use antidumping measures as the new protection weapon of choice, as other barriers to trade have been reduced. In fact, the fastest growing antidumping actions are within regional integration arrangements, where they are being applied by member countries against each other. The authors argue that antidumping is anticompetitive and that its usual justification as a counter to predatory behavior is not relevant in the region. It is imperative, they say, that antidumping be contained if not altogether eliminated. While they find that safeguards are less anticompetitive than antidumping, they believe that all exceptional protection measures, such as antidumping, countervailing, and safeguards, should be considered together with competition policies. In other words, they should become soul mates rather than remain total strangers. The authors do not find that fine-tuning antidumping policy is a good option. Rather, they believe that both trade and competition policymaking ought to be brought under a single entity, as in Peru. This would lead to a more competitive solution.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1958.

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Date of creation: 31 Aug 1998
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Handle: RePEc:wbk:wbrwps:1958

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Keywords: Decentralization; Environmental Economics&Policies; Economic Theory&Research; Labor Policies; Markets and Market Access; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Environmental Economics&Policies; Economic Theory&Research; Trade and Regional Integration; Access to Markets;

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References

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  1. James Levinsohn, 1994. "Competition Policy and International Trade," NBER Working Papers 4972, National Bureau of Economic Research, Inc.
  2. Jeffrey J. Schott, 1994. "Uruguay Round: An Assessment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 64.
  3. repec:fth:michin:362 is not listed on IDEAS
  4. Sarath Rajapitarana, 1995. "Post Trade Liberalization Policy and Institutional Challenges in Latin America and the Caribbean," Reports _014, World Bank Latin America and the Caribean Region Department.
  5. J. Luis Guasch & Sarath Rajapatirana, 1994. "The Interface of Trade, Investment, and Competition Policies: Issues and Challenges for Latin America," Reports _009, World Bank Latin America and the Caribean Region Department.
  6. Hoekman, Bernard M. & Mavroidis, Petros C., 1994. "Antitrust-based remedies and dumping in international trade," Policy Research Working Paper Series 1347, The World Bank.
  7. Rajapatirana, Sarath, 1995. "Post trade liberalization policy and institutional challenges in Latin America and the Caribbean," Policy Research Working Paper Series 1465, The World Bank.
  8. Deardorff, A.V., 1989. "Economic Perspectives On Dumping Law," Working Papers 240, Research Seminar in International Economics, University of Michigan.
  9. Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc.
  10. Barbara J. Spencer, 1988. "Countervailing Duty Laws and Subsidies to Imperfectly Competitive Industries," NBER Chapters, in: Issues in US-EC Trade Relations, pages 315-348 National Bureau of Economic Research, Inc.
  11. repec:fth:michin:240 is not listed on IDEAS
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