Even if dumping may benefit consumers in the short term, they argue, it is unfair for producers to have to compete under such conditions. Accordingly, the supporters and critics of antidumping laws have often talked past each other because they define the proper objectives of antidumping policy altogether differently. We seek to resolve this impasse and join the debate squarely by evaluating antidumping laws according the the standards established by their supporters.
We leave aside the question of whether antidumping laws promote economic efficiency, and look instead at the more basic question of whether these laws do what their supporters say they do. In other words, do antidumping laws really uphold fair trade under any plausible definition of that term? We tackle that question as follows.
The first chapter offers a detailed overview of the complicated procedures and methodologies whereby dumping is determined and measured. The second chapter proceeds to evaluate the extent to which antidumping remedies target the effects of various market-distorting government policies. In the third chapter, we focus on what is touted by antidumping supporters as the paradigmatic scenario that gives rise to dumping: a closed or sanctuary home market enables foreign producers to engage in international price discrimination.
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The conclusion drawn in these first three chapters is that antidumping laws, as currently written and enforced, do not reliably target unfair trade as antidumping supporters typically define that term. Consequently, antidumping remedies routinely punish normal, healthy competition. Having established the fundamentally protectionist nature of contemporary antidumping practice, we turn in the fourth chapter to documenting and analyzing the rapid proliferation of antidumping laws in recent years.
Finally, the fifth chapter addresses what is to be done. Negotiations are now under way at the World Trade Organization to improve existing WTO antidumping rules and thereby limit the scope for protectionist abuses afforded by national antidumping laws. These negotiations, part of the larger Doha Round of global trade talks, offer promising opportunities for antidumping reform here and abroad.
We suggest a general framework for how negotiations should proceed to make the most of those opportunities, and then follow up with detailed proposals for changes to the WTO Antidumping Agreement. Those proposals address not only the determination and calculation of dumping, but also the determination of injury as well as antidumping procedures and remedies.
The antidumping policy debate in the United States has long suffered from serious misunderstandings about how antidumping laws actually work. There is no way around it: antidumping is complicated. Nevertheless, it is impossible to understand how antidumping laws really operate—and thus to evaluate whether they actually do what their supporters say they do—without diving into their technical intricacies.
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In this chapter we introduce the intrepid reader to the basic procedures and methodologies for determining and calculating dumping under U. If it is any consolation, we have left out great reams of additional, complicating detail. Dumping is defined as the sale of a commodity in an export market i. For antidumping duties to be imposed, it is not enough that dumping be found to exist. In addition, the authorities must determine that the domestic industry is materially injured or threatened with material injury, or else that the development of an industry is materially retarded, by reason of dumped imports.
In the United States, an industry can seek relief under the antidumping law by filing a petition with the International Trade Commission and the Department of Commerce.
Domestic producers joining the petition are thus called petitioners. Producers accounting for at least 25 percent of domestic production by volume must support the petition, and opposition by other producers must constitute less than 50 percent of the total output of all producers expressing an opinion one way or the other.
Petitions are required to contain some evidence of dumping and injury in order to initiate an investigation.
However, the evidentiary requirements are quite modest. Figure 1. Once an investigation is initiated, the ITC has 45 days after the filing of the petition to determine whether there is reason to believe that dumped imports are causing or threatening injury to a domestic industry.
Affirmative preliminary findings are rendered in about 79 percent of cases. Following an affirmative preliminary finding by the ITC, the DOC issues questionnaires to mandatory respondents —the largest known foreign producers and exporters of subject merchandise from the countries in question. If a foreign producer has any hope of maintaining access to the U. Responding to an antidumping questionnaire usually requires the diversion of significant company resources and retaining legal, accounting, and economic expertise.
If the DOC prelim is affirmative, liquidation i. The DOC then makes its final determination final within 75 days of the prelim although, here again, the deadline can be extended—this time by up to 60 days. The antidumping deposit rate is only an estimate of dumping liability. The rate is based on dumping margins calculated for the period of investigation, normally the four most recently completed calendar quarters before initiation—that is, a period that concludes months before duty liability generally begins Figure 1.
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This action might not be possible to undo. Are you sure you want to continue? Prior to joining Niskanen, he worked at the Cato Institute, most recently as vice president for research. From to , Lindsey was a senior scholar in research and policy at the Ewing Marion Kauffman Foundation. His writings have been published widely in major media outlets. His current research interests are international law and constitutional law. Glen Weyl is a principal researcher at Microsoft Research New England whose work aims to use technology and economics to find new ways to organize societies to reduce inequality, increase productivity and ease political tensions.
He is visiting Yale University as a visiting senior research scholar and lecturer in the economics department and law school. He then spent three years as a junior fellow at the Harvard Society of Fellows and three years as an assistant professor at the University of Chicago before joining Microsoft. He is a Sloan Research Fellow He has published articles based on this work in many journals. Rashish has testified on the Eurozone and U.
He earned his B. He speaks French, German, Italian, and Spanish. Stiefel Center for Trade Policy Studies, where he coordinates and conducts research on all manners of international trade and investment policy. Since joining Cato in , Ikenson has authored dozens of papers on various aspects of trade policy, focusing his research on U.
Ikenson has been involved in international trade since Before joining Cato in , he was director of international trade planning for an international accounting and business advisory firm. In , he cofounded and was a principal at an international trade consulting firm in Washington, D. He has testified before a variety of congressional committees on various policy matters.
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She directs a fellowship fund for students working on internet issues, the eBay Policy Scholars, and has organized a seminar series on Internet issues. Her current research focuses on malware, trade and trust; the WTO and conflict; and repression, civil conflict and socio-economic outcomes. Aaronson is a frequent speaker on public understanding of globalization issues and international economic developments. Aaronson is the author of six books and numerous articles on trade, human rights, internet governance, and other issues related to globalization.
Walker served as an international affairs fellow with the Council on Foreign Relations, where he was senior adviser to numerous officials in U. He served at the U. He has also worked for the U.
Ikenson's work has been focused on international trade and investment policy.
Prior to the State Department, Dr. Walker was a transatlantic fellow at the German Marshall Fund of the United States, responsible for its Turkey program and Japan portfolio of the Asia team. Raised in Japan, Dr. Walker is a native English speaker and speaks both Japanese and Turkish fluently. Career In , while still at university, Lilianne Ploumen became a community outreach worker in the Crooswijk area of Rotterdam. Peter S. Joshua Walker.
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