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Antidumping Reform, Trade Policy Flexibility, and Compensation

Author

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  • Alexander Roitinger

Abstract

Antidumping has become the dominant instrument for temporarily restricting imports. There is need for concern, as it represents a particularly distorting trade policy measure. Many observers have made suggestions on how to improve the current situation. These sug-gestions aim at restraining antidumping by reducing the number of circumstances where it may be applied. In other words, they envisage higher prerequisites for the use of antidump-ing. Yet, higher prerequisites for temporary import restrictions impair the government’s trade policy flexibility. This article assumes that governments are not ready to sacrifice such flexibility by means of an international trade agreement. Therefore, suggestions that merely intend to raise the prerequisites for the use of antidumping are difficult to realise. We pro-pose an alternative solution for antidumping reform. It considers abolishing antidumping and introducing a revised safeguard clause. This clause would permit temporary import restric-tions without any prerequisites, but would make these restrictions dependent on full com-pensation for affected trading partners. In contrast to existing suggestions for reform, this alternative solution preserves the trade policy flexibility provided by the current antidumping regime, but effectively restrains protectionist behaviour.

Suggested Citation

  • Alexander Roitinger, 2002. "Antidumping Reform, Trade Policy Flexibility, and Compensation," University of St. Gallen Department of Economics working paper series 2002 2002-18, Department of Economics, University of St. Gallen.
  • Handle: RePEc:usg:dp2002:2002-18
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    More about this item

    Keywords

    Antidumping; Safeguard Clause; Compensation;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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