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 4: Section III: procedural obligations - the tasks of the domestic investigating authority

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

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


3. Section II: injury and causality analysis A GENERAL INTRODUCTION A finding of dumping alone does not suffice for the imposition of an antidumping measure. Only in the case where the dumping is causing injury to the domestic industry is a WTO Member entitled to impose anti-dumping duties. So, assuming dumping has been proven, an investigating authority will also have to demonstrate that, as a result of dumped imports, injury to its domestic industry producing the like product has been caused. The AD Agreement does not condition the initiation of an injury analysis on a prior finding of dumping. In practice the two ‘legs’ of the analysis, that is, the investigation regarding dumping margins and the investigation regarding the resulting injury, take place in parallel. An investigating authority has to demonstrate, by looking at indicators specifically reflected in the AD Agreement that the domestic industry producing the like (to the allegedly dumped) product has been injured (Art. 3.2 and 3.4 AD) as a result of the dumped imports (Art. 3.5 AD). To do that, the investigating authority must abide by the same standards of objective examination, as reflected below. The term ‘injury’ is used in the AD Agreement to refer to a situation of current material injury, threat of future injury and the material retardation in the establishment of an industry. The latter concept should not be confused with the infant industry situation. Rather, what the Agreement is referring to is a situation where an industry was about to be...

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