Transcript ANTI-DUMPING NEW SOLUTION - International Trade Relations

ANTI-DUMPING:
A NEW SOLUTION
Presented by:
Catalina Guáqueta
Farida Kerouani
Adrian Senyszyn
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Anti-Dumping
•
Explanation
•
Proposal
•
Broader Implications
•
Futures Challenges
•
Bibliography
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What is Anti-Dumping?
Article VI of GATT 1994:
A product is said to be dumped when its
export price is less than its normal value,
that is less than the sale of a like product
in the domestic market in the exporting
country.
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Anti-Dumping Litigation
• World Trade Organization
– Countries are responsible for bringing a case
to the WTO Dispute Resolution System.
• U.S. Court of International Trade
– Commerce Department determines if antidumping occurred.
– International Trade Commission (ITC)
determines if material injury occurs.
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Anti-Dumping Globally
• Anti-dumping measures taken by WTO members have
increased from 129 in 1994 to 236 in 2000; 83%.
• Dec. 2000 - 1119 anti-dumping measures in place
globally.
• New users: Argentina, India, Brazil, South Africa.
• Traditional users: Canada, U.S., European Union,
Australia, Mexico.
• Most affected industries: Metal, Chemical, plastic,
textiles, machinery and equipment, agriculture and
food.
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Most Affected Sectors
17%
4%
7%
39%
9%
11%
METAL
CHEMICAL
13%
PLASTIC
TEXTILES
Source: WTO Secretariat, Rules Division Anti-dumping Database
M&E
A&F
OTHER
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Anti-Dumping Measures
Statistics (January
- June 2002)
• 30% less investigations for this period in comparison
with last year at the same period of time.
• 37 cases initiated by developed countries and 63 by
developing countries.
• So far we have the similar trend for steel and chemical
sectors.
• Out of 22 AD initiations in the US 16 involved metal
products.
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U.S. As Complainant
• 1 of 59 complaints made by the U.S. were
related to anti-dumping.
• Case: Mexico – Anti-Dumping Duties on
High Fructose Corn Syrup
– U.S. prevailed in litigation.
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U.S. As Respondent
• 7 of 69 cases that have been brought
against the U.S. are related to antidumping.
– Case lost: Anti-dumping – Steel plate from
India.
– 6 of 8 cases in consultations are Anti-dumping
related.
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Impact of Anti-Dumping Laws
Pros
• Prevents Monopolies
• Protects Vulnerable
Industries
• Allows Firms Time to
Compete
• Preserves Jobs
Cons
• Against Free Trade
Concept
• Trade Barrier – Lowers
Economic Growth
• Distorts the Market
• Protects Firms from
Competition
• Hurts Consumers
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Proposal
1. Reform Anti-dumping procedure in
the U.S.
2. Negotiate minor changes to the
WTO Anti-dumping Agreement.
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Reform the U.S. Anti-Dumping Law
• Department of Commerce must review the
concept of anti-dumping.
– Review the methodology of anti-dumping.
• ITC must define material injury and be a more
partial judge.
– Material injury is broad and subject to interpretation.
• Congress must ensure that the ITC is cognizant
of WTO negotiated agreements.
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Changes to WTO Agreement
• Penalize WTO members for abuse of antidumping law.
– Amend article 9, Imposition and Collection of Anti-Dumping
Duties
• Negotiate the industry specific, incremental
decrease of anti-dumping laws globally.
– Revise article 11, Duration and Review of Anti-Dumping and
Price Undertakings.
• Tie in to a compromise on IPR agreements, or
other U.S. interests.
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Stakeholders
In Favor
•
•
•
•
•
Consumers
Exporters
WB/IMF
Economists
Regional Agreements
(NAFTA)
Against
• US currently protected
industries
• US Labor Unions
(AFL/CIO)
• Countries who want to
protect their domestic
market
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Benefits for the U.S.
• Reduce the number of cases brought against
the U.S.
– U.S. wins as a Complainant, and loses as a
Respondent.
• Better defense in anti-dumping cases.
– U.S. law closer to WTO agreements.
• Hold other nations accountable.
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Broader Implications
• Increase competition, which will increase
productivity and efficiency.
• Greater economic prosperity for all WTO
members.
• Lower prices for consumers.
• Higher national income.
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Future Challenges
• Negotiating a change to WTO anti-dumping
agreements.
• Altering the Dispute Settlement System to award
damages.
• Convincing the American public that reform is
critical for continuing U.S. success.
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Bibliography
1
Harvard International Review. National Sovereignty in the World Trading System. Winter 2001.
2
The Economist. Our Law, Your Law. June 27, 2002
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Association for Consumer Research. Global Trade Policy: Agenda for Change. September/October
2001.
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President George W. Bush. Remarks by The President at Signing of the Trade Act of 2002. August 6,
2002.
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Chemical Week. Trade Barriers Start to Fall Following WTO Entry. September 4, 2002.
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Director General Supachai Panitchpakdi. Trade and Sustainable Development: The Doha Development
Agenda. Johannesburg, South Africa. September 3, 2002.
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The Financial Times. Playground Rules that Promote Protectionism. September 3, 2002.
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The Economist. The Dumping Dilemma. May 30, 2002.
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http://www.fin.gc.ca/activty/pubs/antidmp01_e.html
10. WTO Secretariat, Rules Division Anti-dumping Database
11. Dump our Anti-Dumping Law, Michael S. Knoll, Foreign Policy Briefing No. 11 July 25, 1991
12. Anti-dumping Law is discriminatory, Brink Lindsey, CTPS Articles
13. WTO: Trading to the Future
14. http://www.ustr.gov/enforcement/snapshot.html
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