IDEAS home Printed from
   My bibliography  Save this article

The Offsetting Duty Norm and the Simultaneous Application of Countervailing and Antidumping Duties


  • Kelly Brian D

    () (Seattle University)


World Trade Organization (WTO) members have long expressed a norm concerning the trade remedies of countervailing (anti-subsidy) duties and antidumping duties: that these measures offset the behavior that gives rise to them, restoring trade to a level playing field. The WTO agreements provide that the duties imposed should be calculated accordingly, that countervailing duties are measured against subsidies and anti-dumping duties are measured against the excess of a benchmark normal value over export price. This paper makes two principle contributions in light of this norm. First, it develops formal models of antidumping and countervailing duty actions conforming to the offsetting duty norm. Economists have often shown little patience with the rationale for these duties, leading to a dearth of formal analysis that takes into account the social welfare functionthe offsetting duty normincorporated in the WTO agreements; the formal models here provide that analysis. Second, the paper extends this analysis to the simultaneous prosecution of countervailing and antidumping cases. Once rare, simultaneous countervailing and antidumping duty proceedings have become perhaps the most prominent expression of trade protection permitted under WTO rules. The analysis establishes the conditions to identify any overlap in the application of countervailing and antidumping measures and demonstrates that recent practice of WTO members has created excessive application of duties. The analysis also provides the methods for preventing this double-count in simultaneous cases. These results have direct application to current policy debates.

Suggested Citation

  • Kelly Brian D, 2011. "The Offsetting Duty Norm and the Simultaneous Application of Countervailing and Antidumping Duties," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-33, July.
  • Handle: RePEc:bpj:glecon:v:11:y:2011:i:2:n:2

    Download full text from publisher

    File URL:
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Thomas J. Prusa, 2005. "Anti-dumping: A Growing Problem in International Trade," The World Economy, Wiley Blackwell, vol. 28(5), pages 683-700, May.
    2. Swagel, Phillip & Mankiw, N, 2005. "Antidumping: The Third Rail of Trade Policy," Scholarly Articles 2961701, Harvard University Department of Economics.
    3. repec:wsi:wschap:9789812798091_0008 is not listed on IDEAS
    4. Alan V. Deardorff & Robert M. Stern, 2009. "Issues of Manufactures Liberalization and Administered Protection in the Doha Round," World Scientific Book Chapters,in: Globalization And International Trade Policies, chapter 8, pages 249-261 World Scientific Publishing Co. Pte. Ltd..
    5. Douglas A. Irwin, 2005. "The Rise of US Anti-dumping Activity in Historical Perspective," The World Economy, Wiley Blackwell, vol. 28(5), pages 651-668, May.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:glecon:v:11:y:2011:i:2:n:2. See general 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: (Peter Golla). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.