Anti-dumping in developing countries

Thèmes abordés

Antidumping AD Anti-dumping India China South Africa Brasil developing countries Gatt tarrifs trade barrir protectionism policy regimes quotas emerging

Résumé du document

In most countries of the world, trade policy regimes have moved from protectionism to more outward and liberal trade regimes in the last two decades: tariffs and quotas have been reduced. A work by M. Zanardi and M. Moore (2008) shows that adopting a declining
applied tariffs increase the use of anti‐dumping policy in different industrial sectors1. There
is a substitution effect between trade liberalization and anti‐dumping policies.

(Panel B) The anti‐dumping policy can be considered as another form of protection. More developing countries are using anti‐dumping policies to limit imports. This protects developing countries against import competitors. The article VI of the General Agreement of Tariffs and Trade (GATT) allows countries to take action against dumping with different ways (charging extra import duty and to remove the injury to domestic industry in the importing country). The GATT became the World Trade Organization in 1995. The WTO Anti‐Dumping Agreement established a common set of basic rules of anti‐dumping that would apply to all
WTO members.

More than 40 countries of the World Trade Agreement (WTO) are using anti‐dumping investigations and the record is held by developing countries. This paper will be focused on the anti‐dumping policy in a broader context and in four developing countries, members of the World Trade Agreement (WTO), India, South Africa, Brazil and China. We have chosen the BRIC countries without Russia. The case of Russia is
special; the country is not a member of the WTO but has acquired its anti‐dumping law in 20062.

Therefore, the data's are not present in the Global Anti‐dumping Database of the World Bank, it would have been difficult to analyse initiations and measures of this country. We have chosen these four countries because first, they are large developing economies,but also because they are large users of anti‐dumping policy. The remainder of the paper is divided into the following sections. Section 1 discusses the anti‐dumping policy in a broader context.

Section 2 discusses the anti‐dumping policies in our four countries: India, South Africa, Brazil and China. Section 3 will be an econometric approach of a question on anti‐dumping policy and industry protection. Section 4 includes some final remarks.

Tags: Anti‐dumping, industry protection, World Trade Agreement, developing countries, General Agreement of Tariffs and Trade, trade liberalization.

Extraits

[...] That's why to decrease this lack of competitiveness, brazilian authorities are using more and more anti‐dumping measures especially against USA and other devellopping countries as we previously saw. Based on zannetti and Vandenbussche estimations (2010, it can be said that on average, the new tough users of anti‐dumping laws such as Brazil (and other develloping countries) have fewer annual imports as a result of their anti‐dumping measures. Econometric approach We wanted to do an econometric approach to our four countries but we do not have the necessary knowledge to perform an econometric analysis similar to the papers of our teacher Zanardi. [...]

[...] (2006) “Antidumping, Reciprocity, and the Brandeis University manuscript Bown, C. (2008): WTO and Anti‐dumping in Developing Countries”, Economics and Politics 20, pp. 255‐288. Brink Gustav F. (2002) “Antidumping and Countervailing Investigation in South Africa” (Maroelana, South Africa: Gosh Trading CC). David R Grace, Alexia Herwig & Yao Feng Worth Keeping an eye World TradeMagazine Inge Nora Neufeld, (2001) , “Anti‐dumping and coutervailing procédures Use or Abuse ? Implications for developing countries Messerlin, P. (2002) “China in the World Trade Organization: Antidumping and Safeguards,” Moore, M., Zanardi, M. [...]

[...] As we said previously, India is the most frequent users of anti‐dumping policies. Thus, we prefer to start the analysis by India. A. India * The econometric study was based on 23 developing countries: Argentina, Bangladesh, Bolivia, Brazil, Chile, China, Colombia, Ecuador, Hungary, India, Indonesia, Malaysia, Mexico, Paraguay, Peru, Philippines, South Africa, Thailand, Trinidad Tobago, Tunisia, Turkey, Uruguay, Venezuela Until 1991, India had a restrictive and complex trade regime. The most of domestic industries had a high level of protection through import controls and high duties. [...]

[...] The Table 1 shows that the record of anti‐dumping initiations is held by India with 586* initiations, South Africa, Brazil and China are following with 289*, 237* and 180* initiations respectively. These data's represent the number of initiations launched by the reporting member country to import from other countries. Table 1 Data's come from the Global Anti‐Dumping Database of the World Bank. What is the proportion of anti‐dumping initiations of developing countries with other countries all around the world ? The WTO database proposes a table of all initiations of different countries. [...]

[...] If there are renegotiations of any changes 23 of the ADA, it should be change to decrease the ease with which countries are able to take antidumping measures against developing countries, rather than to make it easier for developing countries to impose measures against other countries and all of this could, one day, Improve the world trade liberalization and to put down trade barriers. Bibliografic references Articles Andrew L.: “Treatment Of China As A Non‐Market Economy: Implications For Antidumping And Countervailing Measures And Impact On Chinese Company Operations In The WTO Framework” Aradhna Aggarwa (2002); “L'antidumping law and practice: An Indian Perspective” M. Ataman Aksoy, (1992) indian trade regimes, Country Department The World Bank” Bown, Chad P. [...]