Antidumping and safeguard measures in the political economy of liberalization : the Mexican case
AbstractMexico's creation and use of safeguard and antidumping processes to advance its liberalization illustrate three key points: (1) The country was able to use the instruments without losing political control. In a period of crisis that threatened congressional approval of critical steps in the liberalization-brought on by currency overvaluation and recession, along with unexpected demands from the United States in the North American Free Trade Agreementnegotiations-the government applied a number of trade defense measures. Once the problems were addressed with adequate instruments the number of measures dropped drastically. The instruments had not been captured by protection-seeking interests; (2) The country adopted a liberalization-accepting measure of international norms. An important innovation that Mexico made operational was the use within World Trade Organization (WTO) rules of prevailing international prices as the measure of competition that industry was expected to meet. The WTO rules would also have allowed the use of other standards-as in traditional antidumping-using countries-that impose less discipline. Moreover, the Mexican standard was consistent with the government-industry understanding that though Mexican industry would be protected against extraordinary circumstances it would be expected to face up to international competition; (3) Political judgment and political courage are essential. While mastery of the technical elements of a safeguard or antidumping investigation is mandatory, sustaining liberalization depends in significant part on the political skills to know when to emphasize the technical elements, when to rely more on the discretion the government retains under the rules, and on the courage to do it.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3684.
Date of creation: 01 Aug 2005
Date of revision:
TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Trade Policy; Globalization and Financial Integration; Environmental Economics&Policies; Economic Theory&Research;
Find related papers by JEL classification:
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
- ADM - General Economics and Teaching - - - - -
- FEE - International Economics - - - - -
- INC - Health, Education, and Welfare - - - - -
- AND - General Economics and Teaching - - - - -
- EXP - Macroeconomics and Monetary Economics - - - - -
- ACC - General Economics and Teaching - - - - -
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-14 (All new papers)
- NEP-INT-2005-12-14 (International Trade)
- NEP-POL-2005-12-14 (Positive Political Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.