The Law and Economics of Contingent Protection in the WTO

The Law and Economics of Contingent Protection in the WTO

Elgar International Economic Law series

Petros C. Mavroidis, Patrick A. Messerlin and Jasper M. Wauters

In this important book, three of the leading authors in the field of international economic law discuss the law and economics of the three most frequently used contingent protection instruments: anti-dumping, countervailing measures, and safeguards. When discussing countervailing measures, the authors also discuss legal challenges against prohibited and/or actionable subsidies. The authors’ choice is mandated by the fact that the effects of a subsidy cannot always be confined to the market of the WTO Member wishing to react against it. Assuming there are effects outside its market, an injured WTO Member can challenge the scheme as such before a WTO Panel. Taking the three agreements for granted as a starting point, the book provides comprehensive discussion of both the original contracts, and the case law that has substantially contributed to the understanding of these agreements.

Chapter 3: Section II: injury and causality analysis

Petros C. Mavroidis, Patrick A. Messerlin and Jasper M. Wauters

Subjects: economics and finance, international economics, law - academic, international economic law, trade law

Extract

2. Section I: dumping A WTO Member is entitled to impose anti-dumping duties in a case where it can be demonstrated through an investigation initiated and conducted in accordance with the provisions of the AD Agreement that dumped imports are causing injury to the domestic industry producing the like product. A demonstration that imports were dumped is thus a first essential and necessary condition for the imposition of any anti-dumping measure. Both GATT Article VI.1 and the AD Agreement (Article 2.1) define dumping as the introduction of a product into the commerce of another country at less than its normal value. In what follows we will examine the various provisions of the AD Agreement dealing with the establishment of (a) normal value, (b) the subject product’s export price and (c) the comparison between the two which allows a WTO Member to determine what, if any, the margin of dumping is. A NORMAL VALUE (NV) The normal value of the imported product under examination, generally referred to as the ‘subject product’ is the comparable price for the like product sold in the ordinary course of trade, destined for consumption in the exporting country.1 When there are (1) no sales of the like product in the exporting country, (2) no sales in the ordinary course of trade or (3) not sufficient volume of sales to allow for a proper comparison,2 the authorities are 1 Article 2.1 AD Agreement; Article VI.1 (a) GATT 1994. We will come back to these terms ‘comparable...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information