IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Can competition policy control"301"?

Listed author(s):
  • Finger, J. Michael
  • Fung, K.C.
  • DEC

Should fair trade rules be replaced by national or international competition rules? A familiar argument for doing so is that more rigorously enforced competition standards might eliminate the basis for the burgeoning number of antidumping cases of recent years. A less familiar argument is that the implementation of internationally agreed competition standards might reduce the frequency with which the U.S government uses section 301 of U.S. trade law. Section 301 lists foreign government toleration of systematic anticompetitive activities as one of the bases for taking retaliatory action against foreign uncompetitive practices but were taken up through other mechanisms; extraterritorial application of U.S. antitrust law or direct negotiations sometimes capped by an understanding at the presidential level. These negotiations often included the threat of initiation of antidumping,"301,"or other trade remedies cases. (The structuralimpediments initiative negotiations with Japan are the most familiar example.) In several of these cases, the foreign government agreed to and implemented more rigorous antitrust enforcement, but these actions seldom ended the dispute. The U.S. government pressed on for tangible evidence of increased U.S. export sales. The authors conclude that removing the basis for these disputes -- alleged lax enforcement of competition policy -- did not remove the motive for them -- increased U.S. exports. Competition policy then is not the antidote for"301."The last section of the paper reviews the compatibility of"301"with the preservation of open international trading system. Of 70"301"cases (through December 31, 1992) that have led to policy changes, 52 have led to liberalizations, and only 18 have led to increased trade restrictions. Viewed from the point of view of results, the major shortcoming of"301"is that the United States is the only country whose policies do not come under its scrutiny.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1253.

in new window

Date of creation: 28 Feb 1994
Handle: RePEc:wbk:wbrwps:1253
Contact details of provider: Postal:
1818 H Street, N.W., Washington, DC 20433

Phone: (202) 477-1234
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Finger, J. Michael & DEC, 1994. "A rock and a hard place : the two faces of U.S. trade policy toward Korea," Policy Research Working Paper Series 1264, The World Bank.
  2. O Thomas Bayard & Kimberly A. Elliott, 1992. "‘Aggressive Unilateralism’ and Section 301: Market Opening or Market Closing?," The World Economy, Wiley Blackwell, vol. 15(6), pages 685-706, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1253. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.