E333_ch8_pink

E333_ch8_pink - predatory dumping Antidumping Law Between...

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Bilateral Tariff Reductions (2) Principle: Unconditional most favored nation status The principle of nondiscrimination in international  trade tariff reductions resulting from bilateral  trade negotiations (ex: US and Mexico)  also apply to any other country that is a  MFN MFN: most favored nation’s get reduced tariff  rates 
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1780 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000
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GATT’s purpose 1. Set rules of conduct for international  commerce create an environment for resolving trade  disputes 2. Create forum for multilateral talks that  would lower trade barriers worldwide
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Economics of dumping P 1 a c d Quantity P P world S D b P 2
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Economics of dumping (2) Moving from Pw to P 1 Change in CS: +(a+b+c+d) Change in PS: -(a) Change in welfare: +(b+c+d) Moving from Pw to P 2    US suppliers are forced out of the market  
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Unformatted text preview: predatory dumping Antidumping Law Between 1980 and 2003 Over 1,000 cases filed with DOC and ITC Three possible outcomes: Positive: injury found Terminated: foreign firms avoided further investigation by increasing prices Negative: no dumping found Countervailing duty (2) Petitions filed with DOC (and ITC if an injury test is required) DOC investigates whether there is in fact an export subsidy If yes, the countervailing duty is imposed Upstream subsidies are included If a foreign manufacturers production inputs are subsidized Trade adjustment assistance (TAA) Alternative to increased trade protection: TAA Helps workers displaced by free trade be retrained in other fields Not used very often due to high cost...
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E333_ch8_pink - predatory dumping Antidumping Law Between...

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