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The Trade Effects of Antidumping Duties: Evidence from the 2004 EU Enlargement

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  • Alexander-Nikolai Sandkamp

Abstract

With over 1,600 measures in force in 2017, antidumping (AD) duties constitute a frequently used trade defence instrument. Theory predicts that, unlike normal tariffs, AD duties raise producer prices. However, empirical evidence remains inconclusive. This paper exploits the EU enlargement of 2004 as a natural experiment. Following their accession to the EU, the new member states inherited the Union’s AD duties. Under plausible assumptions, these duties are exogenous to new members’ trade shocks. In line with theoretical considerations, the paper shows that AD duties raise producer prices, but only for imports originating from countries with Market Economy Status (MES). Import prices from non-MES countries remain unchanged, while quantities fall by more. Furthermore, this paper presents evidence that the trade dampening effects of AD persist over time and that duties also indirectly affect non-targeted exporters.

Suggested Citation

  • Alexander-Nikolai Sandkamp, 2018. "The Trade Effects of Antidumping Duties: Evidence from the 2004 EU Enlargement," ifo Working Paper Series 261, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_261
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    Cited by:

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    2. Alexander Sandkamp & Erdal Yalcin, 2020. "Different Antidumping Legislations within the WTO: What Can We Learn from China's Varying Market Economy Status?," CESifo Working Paper Series 8398, CESifo.
    3. Cheng, Lu & Mi, Zhifu & Coffman, D'Maris & Meng, Jing & Chang, Dongfeng, 2021. "Destruction and Deflection: Evidence from American Antidumping Actions against China," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 203-213.
    4. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    5. Andrea Ciani & Joel Stiebale, 2020. "Export performance under domestic anti-dumping protection," Discussion Papers 2020-08, University of Nottingham, GEP.

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    More about this item

    Keywords

    Antidumping; trade; European Union; market economy status;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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