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The impact of antidumping on EU trade

Listed author(s):
  • Jan Baran

This paper investigates the impact of antidumping on EU trade. Compared to previous studies, this paper moves the time horizon of analysis forward, covering the period from 1992 to 2010. Information on antidumping investigations is taken from relatively new Global Antidumping Database. The theoretical model suggests that both import and export flows should be affected. The econometric investigation shows that the use of antidumping significantly distorts imports. A strong and long-lasting effect of trade destruction is identified for AD cases ending with the imposition of final protection. For AD cases withdrawn by applicants or rejected by AD authority, the trade destruction effect is short-lived, and is limited to the duration of provisional measures. The introduction of AD protection also causes an increase in imports from countries not covered by the AD investigation (the trade diversion effect). The results obtained from the model augmented with leading variables reveal that EU antidumping is used against aggressive exporters that rapidly increase their sales on the European market. There is no convincing evidence of antidumping having an impact on EU exports. Although there is a decline in exports, it cannot be associated with antidumping as it starts before the initiation of AD.

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File URL: http://ibs.org.pl/app/uploads/2015/07/IBS_Working_paper_12_2015.pdf
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Paper provided by Instytut Badan Strukturalnych in its series IBS Working Papers with number 12/2015.

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Length: 25 pages
Date of creation: Jul 2015
Handle: RePEc:ibt:wpaper:wp122015
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  1. Zanardi, Maurizio, 2006. "Antidumping: A problem in international trade," European Journal of Political Economy, Elsevier, vol. 22(3), pages 591-617, September.
  2. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
  3. VANDENBUSSCHE, Hylke & ZANARDI, Maurizio, 2006. "The global chilling effects of antidumping proliferation," CORE Discussion Papers 2006038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Brenton, Paul, 2001. "Anti-dumping policies in the EU and trade diversion," European Journal of Political Economy, Elsevier, vol. 17(3), pages 593-607, September.
  5. Staiger, Robert W. & Wolak, Frank A., 1992. "The effect of domestic antidumping law in the presence of foreign monopoly," Journal of International Economics, Elsevier, vol. 32(3-4), pages 265-287, May.
  6. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
  7. Thomas J. Prusa, 2001. "On the spread and impact of anti-dumping," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 591-611, August.
  8. Prusa, Thomas J., 1992. "Why are so many antidumping petitions withdrawn?," Journal of International Economics, Elsevier, vol. 33(1-2), pages 1-20, August.
  9. Thomas Prusa & Susan Skeath, 2002. "The economic and strategic motives for antidumping filings," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(3), pages 389-413, September.
  10. Niels, Gunnar & ten Kate, Adriaan, 2006. "Antidumping policy in developing countries: Safety valve or obstacle to free trade?," European Journal of Political Economy, Elsevier, vol. 22(3), pages 618-638, September.
  11. Niels, Gunnar, 2000. " What Is Antidumping Policy Really About?," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 467-492, September.
  12. Bown, Chad P. & Crowley, Meredith A., 2007. "Trade deflection and trade depression," Journal of International Economics, Elsevier, vol. 72(1), pages 176-201, May.
  13. Jozef Konings & Hylke Vandenbussche & Linda Springael, 2001. "Import Diversion under European Antidumping Policy," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 283-299, September.
  14. Bodhisattva Ganguli, 2008. "The Trade Effects of Indian Antidumping Actions," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 930-941, November.
  15. Durling, James P. & Prusa, Thomas J., 2006. "The trade effects associated with an antidumping epidemic: The hot-rolled steel market, 1996-2001," European Journal of Political Economy, Elsevier, vol. 22(3), pages 675-695, September.
  16. Hylke VANDENBUSSCHE & Christian VIEGELAHN, 2011. "No Protectionist Surprises: EU Antidumping Policy Before and During the Great Recession," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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