Dumping, Antidumping, and Emergency Protection

Abstract

Much in this article is at odds with the popular perception of AD laws. In large part this is because a systemic point of view is taken, which focuses on the economy-wide effects of AD. The hypothesis of this article is that a substantial proportion of AD actions are substitutes for safeguard actions, and that much of the remainder reflect rent-seeking behavior on the part of the domestic import-competing industry. While this is not a new thought, the importance and relevance of of this hypothesis for the future of the multilateral trading system is often overlooked, especially by those who take a purely legal view of dumping and AD. Unfortunately, this appears to be the case for many policymakers involved. One of the justifications for writing wht is largely a review article is to provide a contrasting view to those who see AD as a crucial - and GATT-sanctioned and thus legitimate - weapon in the arsenal of policies to protect a nation's industries from "excessive" foreign competition.