Abstract

This paper examines several important barriers to trade and discusses how they interact with antitrust market definition and competitive effects analysis. It is shown that although various forms of tariffs reduce foreign firms static competitive significance, a tariff does not necessarily reduce their dynamic competitive significance. Moreover, the administration of antidumping duties in the U.S. may actually increase the dynamic competitive significance of imports. Finally, while quota can reduce foreign firms' static and dynamic significance, that does not mean the relevance of imports should be ignored. Nevertheless, the proper treatment of trade barriers in antitrust analysis has no a priori impact on whether a transaction or practice will be viewed as more or less anticompetitive.

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