Does Antidumping Address “Unfair” Trade? New working paper

While antidumping laws were originally developed as the international trade analogue of domestic market competition or antitrust policies, most vestiges of competition policy measures disappeared early in their evolution. Nonetheless, the formal justification for modern antidumping practice remains founded on the bedrock of countering “unfair” trading practices and preserving competitive markets.

We update and consolidate a relatively thin literature that has examined this issue formally. Adapting the established methodology, we develop a “likelihood of predatory practice” index which categorizes antidumping cases in line with the probability that they indeed constitute cases of predatory behavior. Applying this index to the European Union’s use of antidumping over the period 2001 to 2010 we find more instances than previous studies where the EU antidumping measures address cases which would attract competition policy actions, although these are still a minority.

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