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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. Horn, Henrik & Mavroidis, Petros C., 2003. "US – Lamb: United States – 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(S1), pages 72-114, January.
    2. Bown, Chad P., 2002. "Why are safeguards under the WTO so unpopular?," World Trade Review, Cambridge University Press, vol. 1(1), pages 47-62, March.
    3. 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.
    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. Kelly, Kenneth, 1988. "The Analysis of Causality in Escape Clause Cases," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 187-207, December.
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    Cited by:

    1. 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.
    2. Kitano, Taiju & Ohashi, Hiroshi, 2009. "Did US safeguards resuscitate Harley-Davidson in the 1980s?," Journal of International Economics, Elsevier, vol. 79(2), pages 186-197, November.
    3. Sauvé, Pierre, 2013. "The Road to Bali: ERIA Perspectives on the WTO Ministerial and Asian Integration," Papers 645, World Trade Institute.
    4. Bruce A. Blonigen, 2006. "Evolving discretionary practices of U.S. antidumping activity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 874-900, August.
    5. Simon Lacey, . "Life After Doha: Reflections in the run up to MC9," Chapters, in: Yoshifumi Fukunaga & John Riady, Pierre Sauve (ed.), The Road To Bali: ERIA Perspectives on the WTO Ministerial and Asian Integration, chapter 16, pages 195-219, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. 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.
    7. Benjamin H. Liebman & Kasaundra M. Tomlin, 2007. "Steel safeguards and the welfare of U.S. steel firms and downstream consumers of steel: a shareholder wealth perspective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(3), pages 812-842, August.
    8. Hartigan James C., 2015. "Did the Agreement on Safeguards Nullify their Use?," Global Economy Journal, De Gruyter, vol. 15(1), pages 155-172, March.
    9. Yoshifumi FUKUNAGA & John Riady & Pierre Sauve & Zhang Yunling & Jin Kyo Suh & Hank Lim & Daisuke Hiratsuka & Vananrith Chheang & Gary Hawke & Erlinda M. Medalla & Vo Tri Thanh & Yose Rizal Damuri & S, . "The Road To Bali: ERIA Perspectives on the WTO Ministerial and Asian Integration," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2012-rpr-31 edited by Yoshifumi Fukunaga & John Riady, Pierre Sauve, October.

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    JEL classification:

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

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