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U.S. trade remedy law and agriculture: trade diversion and investigation effects

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  • Colin A. Carter
  • Caroline Gunning‐Trant

Abstract

We study U.S. agricultural antidumping and countervailing duty cases from 1980 to 2005, and gauge the effectiveness of trade remedy law as a form of protection. The purpose is to measure the resulting investigation and trade diversion effects. Previous research on trade in manufactured products has shown that the domestic protection offered by AD and CV duties is largely offset by trade diversion. In contrast, we find that for agriculture, trade diversion is relatively unimportant. So AD and CVD cases are very effective forms of protection for U.S. agriculture. Les auteurs étudient les cas de tarifs antidumping et de tarifs compensatoires dans l'agriculture aux Etats‐Unis entre 1980 et 2005, et évaluent l'efficience de cette forme de protection. L'objectif est de mesurer les effets résultant des enquêtes et de la diversion de commerce. Des études antérieures sur le commerce de produits manufacturiers ont montré que la protection offerte par ces mesures antidumping et compensatoires était largement contrebalancée par la diversion de commerce. A contrario, il appert qu'en agriculture la diversion de commerce est relativement peu importante. Voilà qui fait que les mesures antidumping et compensatoires sont des formes de protection efficientes pour l'agriculture américaine.

Suggested Citation

  • Colin A. Carter & Caroline Gunning‐Trant, 2010. "U.S. trade remedy law and agriculture: trade diversion and investigation effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 97-126, February.
    • Handle: RePEc:wly:canjec:v:43:y:2010:i:1:p:97-126
    DOI: 10.1111/j.1540-5982.2009.01565.x
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    2. Lavoie, Nathalie & Joseph, Siny, 2020. "Trade War and Incomplete Labeling Regulation: Lose-Lose Situation for U.S. Consumers," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304645, Agricultural and Applied Economics Association.
    3. Wang, Xiaojin & Reed, Michael, 2015. "Trade Deflection arising from U.S. Antidumping Duties on Imported Shrimp," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196978, Southern Agricultural Economics Association.
    4. Dengjun Zhang, 2015. "The trade effect of price risk: a system-wide approach," Empirical Economics, Springer, vol. 48(3), pages 1149-1167, May.
    5. Tibor Besedeš & Thomas J. Prusa, 2013. "Antidumping and the Death of Trade," NBER Working Papers 19555, National Bureau of Economic Research, Inc.
    6. Colin A. Carter & Tina L. Saitone & K. Aleks Schaefer, 2019. "Managed trade: The US–Mexico sugar suspension agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(3), pages 1195-1222, August.
    7. Chen, Sijia & Steinbach, Sandro, 2020. "Measuring the Impact of Sunset Reviews on Agricultural and Food Trade," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304566, Agricultural and Applied Economics Association.
    8. Ashley Beeler & K. Aleks Schaefer & Jacob Sestak & Glenn Conover, 2024. "Impacts of U.S. countervailing duties on phosphate fertilizers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 620-636, March.
    9. Yeo Joon Yoon & Wongi Kim, 2022. "Dynamic analysis of antidumping using impulse responses: a case between the United States and China," Empirical Economics, Springer, vol. 63(2), pages 671-694, August.
    10. Felbermayr, Gabriel & Sandkamp, Alexander, 2020. "The trade effects of anti-dumping duties: Firm-level evidence from China," European Economic Review, Elsevier, vol. 122(C).
    11. Sandkamp, Alexander, 2020. "The trade effects of antidumping duties: Evidence from the 2004 EU enlargement," Journal of International Economics, Elsevier, vol. 123(C).
    12. Md Iqbal Bhuyan & Keunyeob Oh, 2024. "Trade Destruction and Trade Diversion of Indian Anti-dumping Duties Against Bangladesh," Journal of South Asian Development, , vol. 19(1), pages 138-151, April.
    13. Cecilia Bellora & Sébastien Jean, 2016. "Granting Market Economy Status to China in the EU: An Economic Impact Assessment," CEPII Policy Brief 2016-11, CEPII research center.
    14. C. Carter & S. Mohapatra, 2013. "Inventories and antidumping: the case of orange juice trade," Empirical Economics, Springer, vol. 45(1), pages 247-266, August.
    15. Tibor Besedeš & Thomas J. Prusa, 2017. "The Hazardous Effects Of Antidumping," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 9-30, January.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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