THIRD COUNTRY IMPACT OF EU ANTI-DUMPING MEASURES

Ludo Cuyvers; Weifeng Zhou

Authors

Ludo Cuyvers University of Antwerp, Brussels
Weifeng Zhou University of Antwerp, Brussels

Keywords:

Trade destruction, Trade diversion, Trade deflection, Trade depression.

Abstract

This paper investigates the impact of EU antidumping measures on the targeted country and non-targeted country. A three-country model is employed to examine the trade destruction, trade diversion, trade deflection and trade depression effects associated with the EU antidumping measures imposed on China and the US during the 1995–2005 period. The findings suggest that EU antidumping measures against China destroy Chinese exports to the EU and lead to an increase of Chinese exports to the US (trade deflection). Further, EU antidumping measures on US exports divert Chinese exports in the same products to the EU and lead to a reduction of Chinese exports in the same products to the US (trade depression).

References

Bagwell, K. and Staiger, R.W. (1999), «An Economic Theory of GATT», American Economics Review 89: 215–248.

Bagwell, K. and Staiger, R.W. (2002), The Economics of the World Trading System. Cambridge, MA: MIT Press.

Blonigen, B. and Bown, C. (2003), «Antidumping and Retaliation Threats», Journal of International Economics 60: 249–273.

Blonigen, B. and Prusa, T. J. (2003), «Antidumping», in: Choi, E. K. and Harrigan, J. (eds.), Handbook of International Trade, Oxford, U.K. and Cambridge, MA: Blackwell Publishers.

Bown, Chad P. and Crowley, Meredith A., «Policy Externalities: How US Antidumping Affects Japanese Exports to the EU» (July 2004). FRB of Chicago Working Paper No. 2004-12.

Bown, C. (2006), «The WTO and Antidumping in Developing Countries», working paper, Brandeis University.

Evenett, S. J. and E. Vermulst, 2005, The Politicisation of EC Anti-dumping Policy: Member states, Their Votes and the European Commission. World Economy, 28, pp. 701–17.

Finger, J. M., Hall, K. H., Nelson, D., 1982. The political economy of administered protection. American Economic Review 72, 452–466.

Joseph F. Francois & Gunnar Niels, (2004). «Political Influence in a New Antidumping Regime: Evidence from Mexico», Tinbergen Institute Discussion Papers.

Niels, 2003 G. Niels, Trade diversion and trade destruction effects of antidumping policy: empirical evidence from Mexico, Paper for the European Trade Study Group Annual Conference, Madrid (2003).

Niels and ten Kate, 2004 G. Niels and A. ten Kate, Antidumping protection in a liberalising country: Mexico’s antidumping policy and practice, World Economy 27 (2004), pp. 968–983.

Patrick A. Messerlin, (2004). «China in the World Trade Organization: Antidumping and Safeguards», World Bank Economic Review, Oxford University Press,

Prusa, T. J. (1997), «The Trade Effects of U.S. Antidumping Actions», in Feenstra, R. (ed.), The Effects of US protection and Promotion Policies, Chicago: University of Chicago Press.

Prusa, T. J. and Skeath, S. (2002), «The Economic and Strategic Motives for Antidumping Filings», Weltwirtschaftliches Archiv 138: 389-413.

Prusa, T. J. and Skeath, S. (2005), «Modern Commercial Policy: Managed Trade or Retaliation?», inChoi, E.K. and Hartigan, J. (eds.), Handbook of International Trade, vol. 2, Oxford, U.K. and Cambridge, MA: Blackwell Publishers.

Zanardi, 2002 M. Zanardi, Antidumping: What are the Numbers?, Discussion Paper vol. 02–15, University of Glasgow (2002).

Zanardi, 2004 M. Zanardi, Antidumping: what are the numbers to discuss at Doha?, World Economy 27 (2004), pp. 403–433.