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What is Price Suppression in Abnormal Economic Times? Reflections in Light of the Russia–Commercial Vehicles Ruling

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  • Ludema, Rodney
  • Wu, Mark

Abstract

This article discusses the ambiguity found in the WTO Anti-Dumping Agreement concerning price suppression analysis. Previous case law has established that investigating authorities undertaking to highlight price suppression must conduct a counterfactual analysis. This article examines the difficulties that investigating authorities face in performing such an analysis when the investigating period overlaps with a financial crisis or other abnormal economic circumstances. It suggests that the Appellate Body was correct to require consideration of how profit margins and costs are affected by market circumstances, but ought to pay further attention to the behavior of firms in imperfectly competitive markets.

Suggested Citation

  • Ludema, Rodney & Wu, Mark, 2020. "What is Price Suppression in Abnormal Economic Times? Reflections in Light of the Russia–Commercial Vehicles Ruling," World Trade Review, Cambridge University Press, vol. 19(2), pages 182-195, April.
    • Handle: RePEc:cup:wotrrv:v:19:y:2020:i:2:p:182-195_4
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