Imposition Of Anti-dumping Duties Research Articles

An Analysis of Impact of Anti-dumping Duties on India–China Trade

India has imposed anti-dumping duties (ADDs) on a total of 155 commodities against China across many sectors to protect the domestic industry since 2001. The dumping of Chinese goods into Indian markets has led to the downfall and closure of many domestic industries. Under such circumstances, ADDs had been necessitated for protecting the domestic industry. As per the World Trade Organization (WTO) rules, imposition of ADDs on imports is permitted, provided that the affected country establishes that the domestic industry has suffered material injury by such imports. An elaborate discussion explaining the investigation pertaining to ADD and imposition of ADD in relation with WTO rules is presented in the present article. During the period between 2014 and 2018, ADD has been imposed on a total of 121 commodities. The study finds that ADDs have been partially effective in reducing the imports of the commodities. JEL: F13

Do antidumping measures affect Chinese export-related firms?

We examine how the US and EU antidumping (AD) cases against Chinese firms affected their stock prices and long-term financial performance during 1995–2012, and whether the affected Chinese firms received more or less government subsidies in the subsequent years. Our findings indicate that AD news, especially the final decision on imposing antidumping measures, has significantly negative effects on the stock price of relevant Chinese export-related firms. There is also some limited evidence that the AD affected firms perform worse than their matched peers in terms of profitability. However, little empirical evidence reveals an increase in government subsidies given to AD affected firms after the imposition of AD duties, but we find a decrease in subsidies for non-SOEs.

A Spring without Water: The Conundrum of Anti-Dumping Duties in South African Law

The Agreement on the Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (Anti-Dumping Agreement), permits the imposition of anti-dumping duties for as long and to the extent necessary to counteract dumping which is causing injury subject to the proviso that they must be terminated after five years unless a sunset review has been initiated. Sunset review has the purpose of either permitting or terminating the continuation of an anti-dumping duty. This is significant because if the sunset review is not initiated prior to the expiry of the five year period, the anti-dumping duties will be terminated.
 Therefore, this places a greater emphasis on the determination of the precise date of commencement of the anti-dumping duties. This is because an incorrect determination of the date of imposition of the anti-dumping duty has obvious financial implications for the interested parties. To this end, the Supreme Court of Appeal in South Africa has delivered two salient judgments in this regard: firstly, in Progress Office Machines CC v SARS, and then more recently, in Association of Meat Importers v ITAC. These two cases hinge on the interpretation of the date of 'imposition' of definitive anti-dumping duties particularly where provisional measures are involved, which invariably determines the date of expiry of the duties as espoused by Regulations 38 and 53 of the International Trade Administration Commission Anti-Dumping Regulations.
 This paper contends that these two judgments are conflicting and riddled with inconsistencies. Secondly, the paper contends that the SCA has in the recent AMIE case, virtually rewritten its earlier judgment of Progress Office Machines. Lastly, the paper shows that the approach of South African courts on whether the Anti-Dumping Agreement is binding on South African law, is fraught with uncertainty and an ambivalence .The case analysis also reflects on the impact of the newly minted but yet to be implemented, Customs Duty Act, with a view to assess the impact of the new legislation on the issues currently plaguing the anti-dumping regime of South Africa. 
 

Anti-Circumvention in the Multilateral System: Plus ça Change

World Trade Organization (WTO) Members have long struggled to distinguish between acceptable responses to the imposition of anti-dumping duties and inappropriate efforts to ‘circumvent’ such duties. This article summarizes the efforts to formulate multilateral norms on anti-circumvention, from the early General Agreement on Tariffs and Trade (GATT) dispute settlement challenges through the Uruguay Round, the WTO's Informal Group on Anti-Circumvention and the more recent Rules negotiations of the Doha Round. Despite these efforts, WTO Members have been unable to agree on what constitutes circumvention, much less adopt rules governing the use of anti-circumvention measures. Yet despite the legal uncertainties, thirty-six Members have notified include anti-circumvention provisions to the Committee on Anti-Dumping Practices, and six Members have reported the initiation of 103 anti-circumvention proceedings to the Committee since 2009. While Members would appear to share a common interest in having some predictability and certainty in defining what is and is not appropriate behaviour, both for exporters and importing Members, the gaps, both of principle and practical, have to date proved insurmountable.

Panel Report on eu—Biodiesel: A Glass Half Full?—Implications for the Rising Issue of “Particular Market Situation”

This article provides a detailed analysis of the World Trade Organisation (“wto”) panel report on the eu—Biodiesel dispute which represents the latest development of the wto jurisprudence on anti-dumping. The panel’s decision has significant implications for the rising use of Particular Market Situation (“pms”) by traditional users of anti-dumping (such as Australia) against economies like China in anti-dumping investigations. The panel correctly established that a finding of pms does not provide a sufficient ground for the use of surrogate costs in the determination of constructed normal value (“cnv”) and that the use of that methodology would result in the imposition of anti-dumping duties in excess of dumping margins that should have been established consistently with the wto Anti-Dumping Agreement, that is, by using actual costs recorded by exporters under investigation. It is argued that both Australia’s anti-dumping laws which essentially authorise the use of surrogate costs in the construction of normal value solely based on a finding of pms and Australia’s use of that methodology in practice are contrary to wto rules. The panel’s decision, therefore, is a positive step toward the resolution of the issues related to pms by imposing constraints on the use of a protectionist methodology in determining cnv so as to prevent unjustified inflation of dumping margins and anti-dumping duties.

Mapping Issues of Textile Industry of Pakistan with Trade Policy Framework

The current research investigates Mapping Issues of Textile Industry of Pakistan with Trade Policy Framework. Data were collected from Primary as well as secondary sources It is a statistical research technique in decision making that is used for the selection of a limited number of tasks that produce significant overall effect. It separates the few major problems from the many possible problems. It is named after Vilfredo Pareto, a 19th-century Italian economist. It can summarize all types of data. It can be applied to almost anything. It was revealed that four issues may be solved by the Government through trade policy of Pakistan as shown in figure 7-12 below. First and issue that in the international Markets Preferential Treatment is provided to the competitors and the second issue about Imposition of Anti-dumping duties on Pakistan’s exports may be solved by Rationalizing Tariff Protection Policy (TPP) High tariff protection maintained over a period of time tends to erode competitiveness and affects consumer welfare. Therefore to protect Industry from High Tariffs, Ministry of Commerce will adopt some guiding principles to create a competitive environment that caters for dual aspects of providing level playing field for Pakistani firms in international markets; By Signing Favorable international agreements, Promote competitive markets in Pakistan, Ensure conformity to international agreements and practices, Promote domestic and foreign investment, Create level playing field for Pakistani firms in international as well as domestic markets, Due consideration to consumer welfare, Cater to the changing needs of Pakistan’s economy and create an enabling environment to pursue the legitimate goal of Industrialization in Pakistan. Due to the prompt implementation of the above policy measure by Government on 12th December 2013 European Union granted GSP-Plus status to Pakistan, It gives exporters duty-free access to 27 European countries. GSP (Generalized system of Preference) is exemption of WTO member countries from tariffs by considering as a least developed nation and granted till 2017. It is a chance to export more than US$1 billion worth of products and earn profits of more than Rs1 trillion per year.

Trade Effects of Anti-dumping in India: Who Benefits?

This article assesses the trade effects of anti-dumping (AD) duties levied on 177 (8-digit) products by India during the period 1994 to June 2001. A panel regression has been applied to quantify the effects of AD actions on import volumes, values, and prices. It finds that the investigation effects of AD actions are not substantial. The imposition of AD duties restrains trade (both volume and value) and raises import prices. While trade effects start dissipating in subsequent years, import prices from both named and unnamed countries rise significantly in the post-duty years. There is little evidence that trade is diverted from unnamed to named countries. Thus, the domestic industry is benefited due to the price rise. Their financial position improves at the expense of both consumers and downstream industries. Since anti-dumping is an expensive form of protection, only large and dominant producers in concentrated industries emerge as the major beneficiaries of this protection. Finally, the developing trade partner countries suffer significant import losses when named. However, the trade destruction effect is insignificant for developed countries. Even though the unit value of their imports rises, there is no evidence of decline in trade from these countries.

The Impact of Granting Market Economy Status to China on Antidumping Duties and Imports: The Case of Korea

The Korean government has officially recognized China as a full market economy. This paper investigates the impact of grantingThe Korean government has officially recognized China as a full market economy. This paper investigates the impact of granting market economy status to China on antidumping (AD) duties and imports. With regard to non-market economies (like China), it is presumed that prices and costs are influenced by state interference and, therefore, authorities use prices and costs from a third party economy to construct normal values. This, however, leads to higher dumping margins. This paper examines the use of Non-Market Economy (NME) on dumping margins and statistical analysis finds that NME, in fact, raises margins by 18.7∼27.3%. Furthermore, the imposition of AD duties significantly restrains trade; for example, a 10% AD duty causes imports to fall by about 1.5~3.4%.

Estimating the Impact of Anti‐dumping and Anti‐cartel Actions Using Intervention Analysis

Intervention analysis is proposed as a method for estimating the effects of anti-dumping actions in the presence of a domestic cartel. Data requirements and modelling effort compare favourably with traditional structural model approaches. The method is applied to an antidumping action brought to the European Commission and in which the European producers of the product were fined after an anti-cartel action by the Commission covering an overlapping period. Intervention analysis is applied to distinguish the effects of the anti-dumping action from those of changes in cartel behaviour. It has been argued that in the post-Uruguay-Round world, anti-dumping (AD) actions, as with other contingent protection measures, may become an 'instrument of choice' in place of tariffs to restrict international trade (Messerlin and Reed, 1995). Some reasons for this may be found in the political economy literature (Tharakan, 1991, 1995), where it is argued that such measures, which are typically non-transparent, quasijudicial, GATT-legal and capable of being targeted at the level of an individual supplier, may prove very tempting to both policymakers and those lobbying for protection. If economists are to have an effective input to the debate on such measures then it is essential to be able to estimate the consequences of such protection, preferably in a way that provides reasonable estimates without the need of onerous data or logistical requirements. In this paper we propose a tractable time-series-based method that requires minimal data (the unit value and volume of imports data series). We illustrate the technique by reporting estimates of the costs to the United Kingdom of the price undertaking that resulted from the successful AD action brought to the European Commission in 1982 and directed at four Japanese suppliers of polypropylene (PP) film. The illustration is also of interest because a subset of those European PP producers bringing the AD action were the subject of an anti-trust ruling that resulted in fines for collusive behaviour (Messerlin, 1990). The anti-cartel judgement covered the period during which the industry lodged the complaint of dumping and secured minimum price undertakings from theJapanese producers. Anti-dumping actions in the European Union may be resolved in favour of the complainants by the imposition of AD duties (ADDs) or, more commonly, by the foreign suppliers targeted in the actions 'voluntarily' giving an 'under