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Causing Problems? The WTO Review of Causation and Injury Attribution in U.S. Section 201 Cases

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  • Douglas A. Irwin

Abstract

U.S. safeguard actions have run into problems with the WTO's Panel and Appellate Body reviews for failing to ensure that injury caused by non-import factors is not attributed to imports. This paper reviews the subtle legal and economic differences between U.S. trade law (Section 201) and the WTO's Agreement on Safeguards on the non-attribution issue. The paper then resurrects the Kelly (1988) method of attributing injury to various factors as a potential method by which the ITC can ensure that future decisions conform with the Safeguards Agreement. The method is shown to yield results that are consistent with recent ITC safeguard decisions.

Suggested Citation

  • Douglas A. Irwin, 2003. "Causing Problems? The WTO Review of Causation and Injury Attribution in U.S. Section 201 Cases," NBER Working Papers 9815, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9815
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    References listed on IDEAS

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    1. Kelly, Kenneth, 1988. "The Analysis of Causality in Escape Clause Cases," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 187-207, December.
    2. Horn, Henrik & Mavroidis, Petros C., 2003. "US Safeguard Measures on Imports of Fresh, Chilled or Frozen Lamb Meat from New Zealand and Australia: what should be required of a safeguard investigation?," World Trade Review, Cambridge University Press, vol. 2(03), pages 395-430, November.
    3. Bown, Chad P., 2002. "Why are safeguards under the WTO so unpopular?," World Trade Review, Cambridge University Press, vol. 1(01), pages 47-62, March.
    4. Grossman, Gene M., 1986. "Imports as a cause of injury: The case of the U.S. steel industry," Journal of International Economics, Elsevier, vol. 20(3-4), pages 201-223, May.
    5. Rousslang, Donald J., 1988. "Import injury in U.S. trade law: an economic view," International Review of Law and Economics, Elsevier, vol. 8(1), pages 117-122, June.
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    Cited by:

    1. Bown, Chad P. & Ruta, Michele, 2008. "The economics of permissible WTO retaliation," WTO Staff Working Papers ERSD-2008-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. 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.
    3. Bruce A. Blonigen, 2006. "Evolving discretionary practices of U.S. antidumping activity," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 874-900, August.
    4. Sauvé, Pierre, 2013. "The Road to Bali: ERIA Perspectives on the WTO Ministerial and Asian Integration," Papers 645, World Trade Institute.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • K2 - Law and Economics - - Regulation and Business Law

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