This paper explores whether EU tariff cuts caused greater use of anti-dumping (AD) measures. Substitution between policy instruments is found, with a higher probability of AD measures being applied on products with larger tariff cuts.
The world trading system in its current form aims at reducing multilateral trade barriers across the board. Indeed, the last successfully concluded multilateral trade negotiations led to substantial tariff concessions on the part of most developed economies. What, however, happened to other forms of import protection? Have substantial tariff concessions subsequently been replaced by the use of alternative forms of import protection? In this paper we empirically investigate the relationship between negotiated external tariff cuts and the subsequent use of antidumping actions by the EU. Evidence is found for larger Uruguay Round tariff cuts increasing the probability of subsequent antidumping investigations.
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Tobias D. Ketterer
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