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Australia – Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations

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  • Eliason, Antonia
  • Fiorini, Matteo

Abstract

This paper analyzes the Australia – Anti-Dumping Measures on A4 Copy Paper panel report, the second recent WTO dispute to involve a challenge to Indonesia's paper industry. The Indonesian paper industry benefits from reduced-cost inputs because of the Indonesian government's influence and subsidies over the timber and pulp market. The report offers the first interpretation of ‘particular market situation’ under Article 2.2 of the WTO's Anti-Dumping Agreement. At the same time, it raises questions regarding the appropriateness of using anti-dumping measures to address what are fundamentally subsidy issues. While the panel ultimately found that Australia's measure was inconsistent with Article 2.2, the paper shows that the panel's interpretation of ‘particular market situation’ increases the relative attractiveness of using anti-dumping duties instead of countervailing measures. Two key points on the welfare implications of the decision can be made. The first relates to the motivations of the Australian paper industry and the imperfectly competitive market in which Australian Paper operates. The second is the importance of challenging subsidies rather than imposing anti-dumping duties where the subsidies in question have negative environmental effects.

Suggested Citation

  • Eliason, Antonia & Fiorini, Matteo, 2021. "Australia – Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations," World Trade Review, Cambridge University Press, vol. 20(4), pages 479-490, October.
    • Handle: RePEc:cup:wotrrv:v:20:y:2021:i:4:p:479-490_8
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    References listed on IDEAS

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    1. Crowley, Meredith A. & Hillman, Jennifer A., 2018. "Slamming the Door on Trade Policy Discretion? The WTO Appellate Body’s Ruling on Market Distortions and Production Costs in EU–Biodiesel (Argentina)," World Trade Review, Cambridge University Press, vol. 17(2), pages 195-213, April.
    2. Patrick A. Messerlin, 1990. "Anti-Dumping Regulations or Pro-Cartel Law? The EC Chemical Cases," The World Economy, Wiley Blackwell, vol. 13(4), pages 465-492, December.
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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