GEP 15/11: Antidumping Use and Its Effect on Trade Liberalization. Evidence for the European Union.

Summary

This paper investigates whether antidumping actions may contribute to subsequent trade liberalisation. Using micro-level trade and tariff data at the HS 8-digit level for the European Union, our results support the hypothesis that antidumping policies may promote more aggressive multilateral tariff cuts.

Abstract

In this paper we examine the hypothesis that antidumping actions may contribute to trade liberalization by serving as a ‘safety valve’ for protection-seeking pressures. Using microlevel trade and tariff data at the HS 8-digit level for the European Union, we investigate whether the use of antidumping measures has acted as a catalyst in subsequent multilateral tariff negotiations. Our findings tend to suggest that the use of antidumping policies may have reduced the resistance of domestic protectionist forces towards major tariff reforms, as they show significantly larger tariff cuts for products previously involved in an antidumping investigation.

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Author

Tobias D. Ketterer

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