U.S. Trade Policy and the Adjustment Process
This paper focuses on the adjustment environment in the United States as set out by the active U.S. trade remedy laws (antidumping, countervailing duties, and safeguards) and the Trade Adjustment Assistance program. We document U.S. industries' use of these various laws and relate industry use of trade policies to import competition and revealed comparative advantage. We also examine potential effects of U.S. trade policies on adjustment to shifting comparative advantage and give examples of industry outcomes. An important conclusion is that trade policies delaying industry adjustment can promote new entry into the domestic industry and thereby increase rather than alleviate the pressure on existing plants and workers. Copyright 2005, International Monetary Fund
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Volume (Year): 52 (2005)
Issue (Month): si ()
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