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Trade Remedy Actions in NAFTA: Agriculture and Agri‐Food Industries

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  • John Wainio
  • Linda M. Young
  • Karl Meilke

Abstract

The economic rationale for trade remedy law, while always weak, is undermined by the formation of free trade areas. However, due to political pressure, first CUSFTA and then NAFTA have continued the use of domestic antidumping and countervailing duty laws. With the lowering of border protection, it was feared that there would be an explosion of trade remedy law as NAFTA was implemented. This article examines data on the use of anti‐dumping and countervailing duty investigations in agriculture, and analyses the incidence between NAFTA partners before and after the implementation of free trade, and compared to the incidence with other countries. Given the cost of current AD and CVD suits, options are explored for alternative methods to resolve AD and CVD suits. Evaluation of options hinges on goals held for dispute resolution within NAFTA. Given continued political opposition to eliminating AD and CVD processes, increasing the options for resolving these suits may reduce their overall costs.

Suggested Citation

  • John Wainio & Linda M. Young & Karl Meilke, 2003. "Trade Remedy Actions in NAFTA: Agriculture and Agri‐Food Industries," The World Economy, Wiley Blackwell, vol. 26(7), pages 1041-1065, July.
    • Handle: RePEc:bla:worlde:v:26:y:2003:i:7:p:1041-1065
    DOI: 10.1111/1467-9701.00562
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    References listed on IDEAS

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    1. Giancarlo Moschini & Karl D. Meilke, 1992. "Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 951-961.
    2. Meilke, Karl D. & Sarker, Rakhal, 1997. "Four case studies of agri-food CVDs and a proposal for reforming national administered protection agencies," Agricultural Economics, Blackwell, vol. 17(2-3), pages 147-164, December.
    3. Young, Linda M., 2000. "U.S. Canadian Agricultural Trade Conflicts: Time for a New Paradigm," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(1), pages 1-14.
    4. Unknown, 2000. "Policy Harmonization and Adjustment in the North American Agricultural and Food Industry," Proceedings of the 5th Agricultural and Food Policy Systems Information Workshop, 1999: Policy Harmonization and Adjustment in the North American Agricultural and Food Industry 252446, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    5. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
    6. Anne O. Krueger, 1999. "Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 105-124, Fall.
    7. Unknown, 2001. "Trade Liberalization Under NAFTA - Report Card on Agriculture," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 252447, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    8. Meilke, Karl D. & Huff, Karen, 2001. "Trade Liberalization Under Nafta: Where From Here?," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16819, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    1. Young, Linda M. & Wainio, John, 2005. "The Antidumping Negotiations: Proposals, Positions and Antidumping Profiles," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(1), pages 1-22.
    2. Meilke, Karl D. & Rude, James & Zahniser, Steven, 2006. "The Search for "NAFTA Plus"," 2006 NAAMIC Workshop III: Achieving NAFTA Plus 163881, North American Agrifood Market Integration Consortium (NAAMIC).
    3. Colin A. Carter & Caroline Gunning-Trant, 2010. "U.S. trade remedy law and agriculture: trade diversion and investigation effects," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 97-126, February.
    4. Zahniser, Steven & Moreno, Adriana Herrera, 2014. "North American Agricultural Trade Policy: Are Super-Regionalism and Deeper Regional Integration the "Next Big Thing" after NAFTA," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 15(2), pages 1-33.
    5. Lee, Young-Jae & Kennedy, P. Lynn, 2013. "The Impact Of Nafta On U.S. Agriculture: An Ex-Post, Binary Variable Approach," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142132, Southern Agricultural Economics Association.
    6. Vollrath, Thomas L., 2003. "North American Agricultural Market Integration And Its Impact On The Food And Fiber System," Agricultural Information Bulletins 33639, United States Department of Agriculture, Economic Research Service.

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