Trade Remedies

This chapter explains the various “trade remedies†authorized by international trade treaties and incorporated into U.S. law. Trade remedies are regulatory measures authorized by statute that authorize government investigations into foreign import practices that may be considered “unfair†or to unduly harm U.S. industries. It begins by introducing the concept of unfair competition, along with the concepts of import dumping and government subsidies, and explains why these practices are considered objectionable by some states. It summarizes the treaty regimes that authorize and limit antidumping and countervailing duty investigations. It then describes the step-by-step process of a U.S. antidumping or countervailing duty investigation, including the legal requirements for an affirmative determination and the available remedies. The chapter also introduces another kind of trade remedy unrelated to unfair competition, called a safeguard measure. After summarizing the relevant treaty provisions authorizing such measures, it describes the procedure for, requirements of, and consequences of, a safeguard investigation. Finally, it addresses the Section 301 investigation process, by which the U.S. Trade Representative may take action against foreign laws and policies deemed injurious to U.S. exporters, importers, or foreign investors. It concludes with practice essays and multiple choice questions.