Trade Remedies in International Trade

Abstract

AbstractAntidumping duties, countervailing duties, and safeguards are trade remedies allowing a country to protect its domestic industry from import competition. Some view them as barriers to trade; others as safety nets that allow States to more confidently agree to greater liberalization. Dumping is defined as the introduction of a product into the commerce of another country at is less than its normal value. The antidumping system is ultimately about price comparability to determine if there is price discrimination. In contrast, subsidies are used to pursue wide-ranging governmental objectives. A subsidy involves the transfer of an economic benefit by government to the recipient’s advantage. Safeguards are measures that temporarily restrict imports that, as a result of unforeseen developments and trade liberalization, are causing or threatening to cause serious injury to domestic producers of like or directly competitive products. Their purpose is to offer protection from import competition so that the domestic industry can make the necessary adjustments that will allow it to compete. Despite their economic inefficiencies, trade remedies play an important role in the world trading system, and will likely do so into the future. That is not to say, however, that the world should be complacent. Trade remedies are not a cure for all trade ailments. They are intended to remedy very particular situations and should be used accordingly. The sheer number of cases involving trade remedies indicates that they have not been. Efforts to progressively discipline them should continue.