Anti-dumping Actions Research Articles

Measures on Chinese Products in Indonesia during the Covid-19 Pandemic: Why was Anti-Dumping Action Imposed?

During the Covid-19 pandemic, the Government of Indonesia (GoI) issued policies to keep the situation under control, particularly in the trade sector, with the goal of protecting the state from fraudulent acts of business actors dumping practices. The Indonesian Anti-Dumping Committee (KADI) has investigated Chinese products that cause harm to domestic products, namely Lysine and Hot Rolled Coil of Another Alloy. This article discusses the implementation of anti-dumping action conducted by the KADI, and the challenges that are faced in the performance of anti-dumping action. It is based on normative legal research that applies statutory and conceptual approaches. The results show that KADI’s scientific investigation succeed in proving the causal link between certain imported Chinese products and the injury in Indonesian local industries. There are three challenges faced by KADI in investigating the anti-dumping action. First, the Work From Home system hampered them from collecting the data. Second, a lack number of capable staff to investigate the evidence of dumping in Indonesia. Third, the Regulation of Minister of Finance No. 103/PMK.010/2020 suspend the import duties on all imported products that enter the Indonesian market from September, 22 until December 31, 2020.

Evolving US Anti-Dumping Actions: What Recent Discretionary Practices Can Tell Us

This study examines how US discretionary practices in anti-dumping (AD) proceedings have developed and affected the extent of dumping margins of exporters in the past decade. Using detailed data on dumping margin calculations by the US Department of Commerce (DOC) from 2008 to 2020, we find that the DOC has endeavored to develop discretionary practices in a more nuanced way to inflate dumping margins for both ‘cooperative’ and ‘uncooperative’ exporters. Our statistical and case study show that although the practices known as targeted dumping and particular market situation are associated with smaller dumping margins than overall dumping margins, they critically increase the extent of dumping margins for cooperative exporters of market economies (ME), sometimes resulting in positive dumping determinations which would otherwise have been negative. We also empirically find that there has been an apparent change in the use of adverse facts available (AFA) that has led to much higher dumping margins for ‘uncooperative’ exporters of ME and non-market-economy (NME)-wide entities since the amendment of the Trade Preferences Extension Act (TPEA) of 2015.

Trade Impacts Of The Us Anti-Dumping Actions: A Case Study Of Vietnam

Anti-dumping is among of the important trade protection measures that imported countries use against oversea enterprises. The United States is considered one of the most countries use anti-dumping measures to protect the domestic product market from the foreign competitors exporting identical or similar products into the US market. Vietnam’s exporters also have to face the US anti-dumping investigations, becoming a barrier to the favorable trade flow from Vietnam to the United States. This article uses the data on trade between the US and Vietnam for many years to takes a close look at the importance of promoting and developing bilateral trade between the two countries; as well as point out the remarkable changes of Vietnam’s export to the US before and after initiating anti-dumping investigations. Based on the importance of bilateral trade cooporation and the impacts of the US anti-dumping actions to Vietnam’s export, this article gives several implications to Vietnamese exporters to avoid the US antidumping investigations.

Destruction and Deflection: Evidence from American Antidumping Actions against China

With a decrease in tariffs around the world, antidumping duties, as an important part of temporary trade barriers, have increased dramatically to take their place. China and the United States (US) are the two heaviest targets and users of antidumping investigations respectively. In this paper, using Chinese annual transaction-level export data from 2000 to 2017, we study the trade destruction effect and the trade deflection effect of all antidumping investigations initiated by the US against China. We find strong evidence of both destruction and deflection effects. American antidumping actions reduce China's exports to the US, while increasing exports to non-US countries. Critically, the trade destruction and deflection effects are long-lived, and industry indicators (including industry employment, industry concentration and capital intensity) play significant roles in deflecting trade. In general, the impact of antidumping actions could be greater than what the direct effect alone might suggest.

Effects of United States Anti-dumping Actions on Sino-U.S. Trade in Steel Products

ABSTRACT This study focuses on the effects of the United States (U.S.) anti-dumping policy targeting China’s steel products, based on the HS 10-digit code monthly data from 1995 to 2015. It shows that as soon as the U.S. government implemented the affirmative preliminary ruling of an anti-dumping case, the volume of Chinese exports to the U.S. decreased regardless of the outcome of the final ruling. In the meantime, the U.S. imports of the involved products from other competing countries increased. It further finds that China’s exports of the impacted products were diverted to the third-party countries, most of which were developing countries. This finding is contrary to those of studies from other industries such as textiles and agricultural products.

DISPUTE SETTLEMENT OF ANTI-DUMPING LEGAL ASPECT IN INDONESIA BASED ON GATT/WTO PROVISIONS (ALLEGATIONS CASE STUDY OF DUMPING WOOD FREE COPY PAPER BETWEEN SOUTH KOREA AND INDONESIA)

The increase of trading activities in economic globalization requires a strong international financial and trade system to distribute capital in the implementation of world trade. From the considerable problems in the globalization of trade, the international community has begun to draft several regulations that can be agreed together. Therefore, there is a need for rules and regulations in international trade relations, in this case, an agreement realizing the role of GATT/WTO as an international trade organization that determines and assists in resolving trade disputes between countries. Legal issues will be discussed in this paper is, 1) How is the implementation of GATT / WTO about anti-dumping law; 2) How is the implementation of anti-dumping law in Indonesia; 3) What is the legal aspect of dispute resolution of the case study in the alleged Dumping Wood Free Copy Paper case between South Korea and Indonesia. In this paper, the research method is normative legal research that accommodates regulations, decisions and general principles of (international-trade) law.The results discussed in this paper are the role of GATT/WTO in dealing with anti-dumping in Indonesia regulation and implementation of anti-dumping in its legal territorial area, and South Korea’s anti-dumping case study on Indonesia. Conclusions from this paper include, Indonesia must better to protect a regulation regarding anti-dumping measures by enforcing strong laws and other anti-dumping regulations. It is a legal urgency as an export-import activity because in the implementation of international trade defence is not enough if a Government Decree regulates anti-dumping actions. Still, it must continue to update the rules of the WTO’s provisions which always develop.

Anti-dumping activities against China: patterns and effects

This paper provides a thorough description of anti-dumping activities in the period 1980–2015, with a focus on measures imposed by the European Union and the United States. We document a series of stylized facts, such as the emergence of China as a major target of administered protection, the concentration of duties in few sectors, and the increasing share of intermediate goods subject to anti-dumping measures. Product-level information on Chinese exporting firms shows that anti-dumping does indeed reduce exports and it has an impact on both the extensive and the intensive margin of trade. Moreover, the price of targeted products tends to rise marginally, so that the fall in export quantities is particularly strong.

Marine shrimp farming in the state of Ceará: an analysis of the productive and economic parameters, in the period 2003-2012

Brazil was the third largest producer of white shrimp in Latin America, with 75,000 tons and R$ 600 million, in 2012. The present work focused on the impacts of the IMNV pathogen, the anti-dumping action imposed by USA and the exchange rate appreciation of Brazilian currency in marine shrimp culture in a semi-intensive system in Northeastern region and also on the identification of options for sustainable production. Data were collected on shrimp farms (Compescal and Aquafort) at Ceara state. During the period from 2003 to 2007, these factors affected directly the competitiveness of Brazilian farmed shrimp exportation. However, in 2007 the shrimp producers started to sell on domestic market, which made possible to increase their production, revenue, income and profit levels. In 2007, Compescal had a loss of R$ 2,582,000.00. Although in 2008 it had a profit of R$ 2,353,000.00, while in 2012 the profit has increased to R$ 11,940,000.00. Aquafort was able to successively increase its profit margin, from R$ 865,000.00, in 2007 to R$ 2,583,000.00 in 2012, representing an annual growth rate of 40%. The economic feasibility analysis showed that under simulated conditions, the IRR maintained a direct and more than proportional link to changes in shrimp feed and sales prices, as well to productivity.

Trade Effects of US Antidumping Actions against China*

Using data on US imports, classified at the 10‐digit Harmonized System commodity level, we study the effects of all antidumping investigations initiated by the USA against China between 1998 and 2006. We find that antidumping actions cause a reduction in the volume and value of imports from China as well as an increase in the price of those goods in the US market. Critically, however, we find that these effects are short‐lived and dissipate approximately 2 years after the antidumping decision. Furthermore, antidumping actions against China prompt a substitution effect as they increase US imports from other countries. In general, our results cast doubt on the effectiveness of antidumping actions against China as mechanisms for protecting US producers.

Anti-dumping Practices and China's Implementation of WTO Rulings

AbstractWe explore China's behaviour in taking anti-dumping actions, with a focus on those which have been challenged under the WTO dispute settlement mechanism. We argue that the typical motivations behind China's resort to anti-dumping measures include protection, retaliation, industrial development and export promotion. These motivations are likely to carry more weight than China's observance of WTO obligations when deciding whether to impose anti-dumping measures and whether to implement WTO rulings. Brief recommendations are provided to foreign governments and exporters on how to avoid China's anti-dumping actions.

What's Wrong with America's Antidumping Policy?

Antidumping actions have been an increasingly popular means of dealing with alleged unfair international trade practices in the last few decades. In the 1970s, only the United States and a few other countries used antidumping laws to prevent or punish foreign producers for alleged inappropriate trade policies, but these laws have become much more popular and widespread since the creation of the World Trade Organization. This paper discusses some of the most serious problems with the current U.S. antidumping policy. A bibliography with links to more than 100 articles on trade is also included.

Anti-Dumping Duty Circumvention through Trade Re-Routing: Evidence from Chinese Exporters

We study the evasion of U.S. anti-dumping duties by Chinese exporters through trade rerouting via third countries or regions. Using detailed monthly trade data reported by China and the U.S. Customs during the period of 2002–2006, we find that U.S. anti-dumping actions against China lead to a stronger positive correlation between U.S. imports from third countries and Chinese exports to the same third countries. Such an effect is more pronounced for the products subject to anti-dumping duties (treatment groups) than similar products not subject to these duties (control groups), which is consistent with trade re-routing. We show further that the positive correlation increases with some product or third-country characteristics that are conducive to duty evasion.

THE HAZARDOUS EFFECTS OF ANTIDUMPING

We investigate the extent to which antidumping actions eliminate trade altogether. Using quarterly 10‐digit HS‐level export data for products involved in U.S. antidumping cases we find that antidumping actions increase the hazard rate by more than 50%. We find strong evidence of investigation effects with the impact during the initiation and preliminary duty phases considerably larger than once final duties are imposed. There are also important differences with respect to the size of duties with cases with large duties experiencing very large investigation effects. We show the antidumping (AD)‐affected countries are less likely to return to the market even after the AD order is removed. (JEL F13, F14)

Anti-dumping protection, price undertaking and product innovation

This paper examines how price undertaking policies affect the product investments of firms in an intra-industry trade model. We show that the dumping margin will decline if the products become more differentiated. Under bilateral anti-dumping actions, relative to those under free trade, the aggregate product R&D investment may either increase or decrease, depending on the tolerable dumping margin set by the governments. By contrast, the aggregate product R&D will definitely decline and the products will become less differentiated if only one government implements anti-dumping actions.

Sanctuary markets and antidumping: an empirical analysis of U.S. exporters

Antidumping proponents in the United States often argue that foreign firms use profits obtained behind home market barriers to “subsidize” allegedly “unfair” pricing abroad. This paper examines this “sanctuary market” hypothesis for antidumping petitions filed against U.S. manufacturing exporters. Econometric results suggest that there is little evidence that the U.S. manufacturing firms facing antidumping actions abroad are beneficiaries of a home market sanctuary during the 1994–2007 time period. This evidence suggests that current WTO disciplines are inadequate to protect firms from antidumping investigations that do not benefit from sanctuary markets.

Summary of General Discussion on “Streamlining Non-Tariff Measures in ASEAN: The Way Forward”

The general discussion focused on the difficulty of measuring non-tariff measures (NTMs) and determining which NTMs may be non-tariff barriers (i.e., measures that reduce trade intentionally). As an example, Jayant Menon suggested anti-dumping actions, which are NTMs that have been used as non-tariff barriers. Dumping is a situation of international price discrimination, where the price of a product when sold in an importing country is lower than the price of that product in the market of the exporting country. An import-competing firm that is losing market share may claim that dumping is hurting the country's industry to have countervailing measures imposed. Such measures typically remain in place until a dispute has been settled, which in some cases can take years. Moreover, Menon noted that monitoring the incidence of non-tariff measures can be difficult as many non-tariff measures are easily implemented. He gave the example of two countries, where a comprehensive free trade agreement had led to growing trade until one country imposed a requirement for imports to arrive at a designated port.Somkiat Tangkitvanich cautioned that the authors’ conclusion regarding the incidence of NTMs was relatively low in ASEAN as it was not supported by other evidence. Bhanupong Nidhipraba pointed out that the incidence of NTMs is large in certain industries in Thailand. He also noted, however, that many of these NTMs are quality measures to meet the high product standards in export markets. He continued that consumers benefit from NTMs if they increase the quality of products or reduce negative externalities. Furthermore, the imposition of NTMs may have long-run effects on the supply and demand of products that are likely to be different from the short run.

The EU's Antidumping Actions Against Chinese Products

Abstract As the importance of tariffs in international trade has declined with the reduction of tariff rates under the GATT/WTO programs of multilateral trade liberalization, most governments prefer to protect domestic industries from foreign competitors through a variety of non-tariff barriers. Antidumping actions have recently become the world's biggest trade impediment due to their specific features and the antidumping activity of new users. Since China has become the major engine of world trade growth in recent years, it also has become the largest anti-dumping target in the world. However, the present world competition situation implies that world trade liberalization might arouse regional trade friction. The objective of this research is to identify whether China's WTO accession changed China's situation with regard to EU antidumping actions. The research analysis empirically proved that trade liberalization could partly affect the EU's antidumping actions against Chinese exports and the higher degree of industrial concentricity becomes a motive to increase the EU's antidumping activities against China.

Invisible Trade Barriers: Trade Effects of US Antidumping Actions Against the People's Republic of China

We conduct an empirical analysis on the impact of the United States (US) antidumping actions against the People’s Republic of China (PRC) on the bilateral trade and US imports from other trade partners. Using the data set based on the Harmonized System (HS) tariff code, we examine the trade patterns of the PRC and other countries, and find evidence for the trade restriction effect and the trade diversion effect. Further, we examine the intensity and duration of both restriction and diversion effects. The antidumping measures have effectively raised the prices of imports from the PRC and reduced US imports from the PRC only in the short term. Nevertheless, due to the coexistence of trade diversion effects, the overall remedy effect of antidumping actions on domestic industries is considerably limited. In addition, we investigate other factors that influence the efficiency of antidumping measures, such as the antidumping duty amount, the PRC’s market position in the US, and the US market share in the PRC.

The Micro-Formation Mechanism of Trade Conflicts between Large Developing Countries: India’s Anti-dumping Action against China

Employing Grossman and Helpman’s “protection for sale” model, this article uses data on anti-dumping actions from 1999 to 2009 to perform a quantitative analysis of factors influencing India’s determinations of anti-dumping duties against China, and reveals the micro-formation mechanism of economic conflicts between China and India. We find that the political power of India’s anti-dumping plaintiffs markedly increases the tariff level of its final determinations and that the relationship between the import penetration ratio and duty rates depends upon whether the plaintiffs are politically organized. Further, there is a significant positive correlation between India’s anti-dumping duty rates and its unfavorable trade balance with China. This indicates that in determining anti-dumping duties, Indian authorities are clearly influenced by the political clout of their domestic interest groups. They are also motivated by the desire to keep down China and gain the upper hand in the face-off between the “dragon and the elephant.”

China's WTO participation in anti-dumping disputes (2001-2011)

The anti-dumping war between the US and China has attracted much attention lately, especially after a March WTO ruling and a November US domestic court ruling on the issue in 2011. While the former held that the current US method of applying countervailing and anti-dumping duties simultaneously on imports from China and other non-market economies was 'inconsistent' with the WTO rules, the latter ruled that such action was 'illegal' under the US countervailing law. China has been one of the most frequent anti-dumping investigation targets by both developed and developing countries for decades. Although it currently has more than one hundred anti-dumping actions against its trading partners at the domestic level, China is a very new player of anti-dumping litigation at the WTO level. China filed its first WTO claim on anti-dumping in December 2007 against the US, since when it has made frequent appearance at the WTO dispute settlement in this regard. This Article examines China's participation in anti-dumping disputes during the first ten years of its WTO membership, five as complainant and four as respondent. The alleged undervalued Chinese currency has been claimed to provide unfair price advantages to Chinese products and consequently tops trade frictions between China and its trading partners. It to some extent contributes to the rising anti-dumping disputes of China. With the continuing pressure to appreciate the Chinese currency globally as well as the current debit crisis in the EU, more anti-dumping and countervailing investigations against China are expected to emerge as countries are pushing more exports to assist the gloomy domestic economies. This becomes more likely taking into account the mounting claims on the job lost in the US due to the flux of cheap and competitive Chinese products.