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

  • Douglas A. Irwin

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.

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File URL: http://www.nber.org/papers/w9815.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9815.

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Date of creation: Jul 2003
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Publication status: published as Irwin, Douglas A., 2003. "Causing problems? The WTO review of causation and injury attribution in US Section 201 cases," World Trade Review, Cambridge University Press, vol. 2(03), pages 297-325, November.
Handle: RePEc:nbr:nberwo:9815
Note: ITI
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Web page: http://www.nber.org
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  1. 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.
  2. 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.
  3. Kelly, Kenneth, 1988. "The Analysis of Causality in Escape Clause Cases," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 187-207, December.
  4. Gene M. Grossman, 1984. "Imports as a Cause of Injury: The Case of the U.S. Steel Industry," NBER Working Papers 1494, National Bureau of Economic Research, Inc.
  5. 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.
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