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The Trade Effects of U.S. Antidumping Actions

  • Thomas J. Prusa

    ()

    (Rutgers University)

In this paper I present evidence on the effectiveness of AD actions. Using a data set based on the line-item tariff codes identified in the cases, I examine the trade patterns of both countries named in the petition and those countries not subject to the investigation. Several important finding emerge. First, AD duties substantially restrict the volume of trade from named countries, especially for those cases with high duties. Second, AD actions that are rejected still have an important impact on named country trade, especially during the period of investigation. Third, there is substantial trade diversion from named to non-named countries and the diversion is greater the larger is the estimated duty. Because of the diversion of imports, the overall volume of trade continues to grow---even for those cases which result in duties. Fourth, despite the diversion of imports, AD law still offers important benefits because it induces substantial import prices increases both by named and non-named countries. Finally, because of the diversion of imports, aggressive use of AD law by U.S. firms has the peculiar side-effect of benefiting non-named countries who are active in the areas under investigation.

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Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199603.

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Date of creation: 09 Aug 1996
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Handle: RePEc:rut:rutres:199603
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  1. Robert W. Staiger & Frank A. Wolak, 1989. "Strategic Use of Antidumping Law to Enforce Tacit International Collusion," NBER Working Papers 3016, National Bureau of Economic Research, Inc.
  2. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  3. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June.
  4. Robert Baldwin & Jeffrey Steagall, 1994. "An analysis of ITC decisions in antidumping, countervailing duty and safeguard cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(2), pages 290-308, June.
  5. Wendy L. Hansen & Thomas J. Prusa, 1996. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater Than the Whole," Departmental Working Papers 199422, Rutgers University, Department of Economics.
  6. Prusa, Thomas J., 1992. "Why are so many antidumping petitions withdrawn?," Journal of International Economics, Elsevier, vol. 33(1-2), pages 1-20, August.
  7. Anderson, James E, 1992. "Domino Dumping, I: Competitive Exporters," American Economic Review, American Economic Association, vol. 82(1), pages 65-83, March.
  8. repec:att:wimass:9413 is not listed on IDEAS
  9. Wendy L. Hansen & Thomas J. Prusa, 1995. "The Road Most Taken: the Rise of Title VII Protection," The World Economy, Wiley Blackwell, vol. 18(2), pages 295-313, 03.
  10. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," NBER Working Papers 4696, National Bureau of Economic Research, Inc.
  11. Harrison, Ann, 1991. "The new trade protection : price effects of antidumping and countervailing measures in the United States," Policy Research Working Paper Series 808, The World Bank.
  12. Fischer, Ronald D., 1992. "Endogenous probability of protection and firm behavior," Journal of International Economics, Elsevier, vol. 32(1-2), pages 149-163, February.
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