How do EU Trade Remedies Affect Korean Firms?

Abstract

Purpose - To test how EU imports from Korea are affected, we utilize cases of EU antidumping and countervailing measures. Design/methodology/approach - Using cases from 1992 to 2008, we test empirically based on three aspects: the tariff effects model, the initiation of an investigation effects model, and the ruling result model. We also extend the tariff effect by industry. Findings - The effect of EU authorities on the initiation of the antidumping or countervailing duty investigation is reduced by about 0.81-1.12% for the import amount, and 0.85-1.33% for the volume of imports. If the final judgment is affirmed, the average amount imports and average quantity of imports would decrease by 2.27% and 2.16%, respectively. For the effect of decreasing the volume of imports by industry, the drop in the shrinkage of textiles and other products is relatively large compared to other industries with typical small and medium enterprises. Research implications or Originality - Since the price of domestic exports from the preliminary antidumping or final tariff imposition is increased, our findings suggest that the price competitiveness of the commodity market weakens.