Chapter

Economics or Politics?

Aradhna Aggarwal

in The Anti-Dumping Agreement and Developing Countries

Published in print August 2007 | ISBN: 9780195689273
Published online October 2012 | e-ISBN: 9780199081486 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780195689273.003.0005
Economics or Politics?

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This chapter reports the theoretical discussion and the empirical evidence on various justifications of anti-dumping use from three perspectives: the political, the economic, and the political economy. It then empirically investigates the macroeconomic factors that motivate the use of anti-dumping. It shows that anti-dumping rules are primarily aimed at providing protection. There are stringent prerequisites of predatory dumping which are never fulfilled. The economic justification of anti-dumping is not to prevent predatory dumping alone as has been highlighted by many experts. Trade pressures, tariff rate reductions, and creating retaliatory capabilities appear to motivate the use of anti-dumping in developing countries while domestic macroeconomic pressures influence anti-dumping initiations in developed countries. There is need to reform the agreement to close the gap between what anti-dumping is supposed/claimed to do and what in reality it is used for. This would prevent the misuse of the tool for protection purposes.

Keywords: anti-dumping use; political economy; macroeconomic factors; anti-dumping rules; economics; politics; trade pressures; tariff rate reductions

Chapter.  12643 words. 

Subjects: International Economics

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