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How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel

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  • Chad Bown

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Abstract

Use of temporary trade barriers (TTBs) has proliferated across countries, industries, and even policy instruments. We construct a panel of bilateral, product-level US steel imports that are matched to a unique data set on trade policy exclusions that are associated with the 2002 US steel safeguard in order to compare the trade impacts that result from application of various TTB policies over 1989–2003. We find that the trade effects of an applied safeguard—which is statutorily expected to follow the principle of nondiscriminatory treatment—can nevertheless compare closely to the application of the explicitly discriminatory antidumping policy. Our results on trade policy substitutability complement other recent research on these increasingly important forms of import protection. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Chad Bown, 2013. "How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(4), pages 449-481, June.
  • Handle: RePEc:kap:revind:v:42:y:2013:i:4:p:449-481 DOI: 10.1007/s11151-013-9382-z
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bruce A. Blonigen & Benjamin H. Liebman & Wesley W. Wilson, 2007. "Trade Policy and Market Power: The Case of the US Steel Industry," NBER Working Papers 13671, National Bureau of Economic Research, Inc.
    2. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    3. Bown, Chad P. & Crowley, Meredith A., 2013. "Import protection, business cycles, and exchange rates: Evidence from the Great Recession," Journal of International Economics, Elsevier, vol. 90(1), pages 50-64.
    4. Blonigen, Bruce A. & Liebman, Benjamin H. & Pierce, Justin R. & Wilson, Wesley W., 2013. "Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas," Journal of International Economics, Elsevier, pages 369-378.
    5. Bruce A. Blonigen & Benjamin H. Liebman & Justin R. Pierce & Wesley W. Wilson, 2012. "Are all trade policies created equal? empirical evidence for nonequivalent market power effects of tariffs and quotas," Finance and Economics Discussion Series 2012-17, Board of Governors of the Federal Reserve System (U.S.).
    6. Chad P. Bown, 2010. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Chapters,in: China's Growing Role in World Trade, pages 281-337 National Bureau of Economic Research, Inc.
    7. Chad P. Bown, 2005. "Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 515-555, June.
    8. Chad P. Bown & Meredith A. Crowley & Rachel McCulloch & Daisuke J. Nakajima, 2005. "The U.S. trade deficit: made in China?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 2-18.
    9. Chad P. Bown & Baybars Karacaovali & Patricia Tovar, 2014. "What Do We Know About Preferential Trade Agreements and Temporary Trade Barriers?," Working Papers 201418, University of Hawaii at Manoa, Department of Economics.
    10. Bown, Chad P. & Crowley, Meredith A, 2016. "The Empirical Landscape of Trade Policy," CEPR Discussion Papers 11216, C.E.P.R. Discussion Papers.
    11. Matilde Bombardini & Bingjing Li, 2016. "Trade, Pollution and Mortality in China," NBER Working Papers 22804, National Bureau of Economic Research, Inc.
    12. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
    13. Bown, Chad & Porto, Guido, 2010. "Exporters in Developing Countries: Adjustment to Foreign Market Access after a Trade Policy Shock," Papers 88, World Trade Institute.
    14. repec:spr:minecn:v:30:y:2017:i:3:d:10.1007_s13563-017-0110-2 is not listed on IDEAS
    15. Bown, Chad P., 2009. "The global resort to antidumping, safeguards, and other trade remedies amidst the economic crisis," Policy Research Working Paper Series 5051, The World Bank.
    16. Aquilante, Tommaso, 2015. "Bureaucrats or Politicians? Political Parties and Antidumping in the US," MPRA Paper 70359, University Library of Munich, Germany.

    More about this item

    Keywords

    Safeguards; Antidumping; Countervailing duties ; Temporary trade barriers; MFN; F13;

    JEL classification:

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

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