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Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes

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  • Thomas J. Prusa
  • Robert Teh

Abstract

We analyze whether preferential trade agreements (PTAs) affect the incidence and pattern of antidumping (AD) filings. We estimate AD provisions in PTAs have decreased the incidence of intra-PTA AD cases by 33-55% and have increased the number of AD actions against non-PTA members by 10-30%. The net effect of PTA rules on total AD filings is small. Our results are robust to alternative estimation approaches and controlling for a myriad of other PTA-related phenomena. Our results suggest a protection analogue to the "trade creation-trade diversion" impact of PTAs. PTA members are spared from AD actions but non-PTA members face even greater AD scrutiny.

Suggested Citation

  • Thomas J. Prusa & Robert Teh, 2010. "Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes," NBER Working Papers 16276, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16276
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    Cited by:

    1. Chad P. Bown & Patricia Tovar, 2016. "Preferential Liberalization, Antidumping, and Safeguards: Stumbling Block Evidence from MERCOSUR," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 262-294, November.
    2. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    3. Chad P. Bown, 2014. "Trade Policy Flexibilities and Turkey: Tariffs, Anti-dumping, Safeguards and WTO Dispute Settlement," The World Economy, Wiley Blackwell, vol. 37(2), pages 193-218, February.
    4. Knobel, Alexander (Кнобель, Александр) & Baeva, Marina (Баева, Марина), 2017. "Protective Measures in Integration Agreements and Their Impact on Mutual Trade and Trade with Third Countries: Features of Russia and the Countries of the Eurasian Economic Union [Защитные Меры В И," Working Papers 051735, Russian Presidential Academy of National Economy and Public Administration.
    5. Tan Li & Larry D. Qiu, 2021. "Beyond trade creation: Preferential trade agreements and trade disputes," Pacific Economic Review, Wiley Blackwell, vol. 26(1), pages 23-53, February.
    6. Bown, Chad P. & Karacaovali, Baybars & Tovar, Patricia, 2014. "What do we know about preferential trade agreements and temporary trade barriers ?," Policy Research Working Paper Series 6898, The World Bank.
    7. Tabakis, Chrysostomos & Zanardi, Maurizio, 2019. "Preferential trade agreements and antidumping protection," Journal of International Economics, Elsevier, vol. 121(C).
    8. Tan LI & Larry D. QIU, 2015. "Beyond Trade Creation: Free Trade Agreements and Trade Disputes," Working Papers DP-2015-28, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Zdzisław W. Puślecki, 2016. "Bilateral trade agreements and the rise of global supply chains," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 4(5), pages 17-23, October.
    10. Gabriel Felbermayr & Wilhelm Kohler & Rahel Aichele & Günther Klee & Erdal Yalcin, 2015. "Potential impact of the Transatlantic Trade and Investment Partner (TTIP) on developing and emerging countries," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 67, July.
    11. Staiger, Robert & Bagwell, Kyle & Bown, Chad, 2015. "Is the WTO Passé?," CEPR Discussion Papers 10672, C.E.P.R. Discussion Papers.
    12. Ludema, Rodney D & Mayda, Anna Maria, 2011. "Canada: No Place Like Home for Antidumping," CEPR Discussion Papers 8389, C.E.P.R. Discussion Papers.
    13. Prusa,Thomas J. & Zhu,Min, 2021. "The Impact of PTAs on the Duration of Antidumping Protection," Policy Research Working Paper Series 9638, The World Bank.
    14. Kadochnikov, Pavel (Кадочников, Павел) & Flegontova, Tatiana (Флегонтова, Татьяна) & Aliev, Timur (Алиев, Тимур), 2018. "Dynamics and Structure of Non-Tariff Measures Applied in International Trade [Динамика И Структура Нетарифных Мер, Применяемых В Международной Торговле]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 82-101, December.
    15. Zdzislaw W. Puslecki, 2018. "The Increasing Importance of Bilateral Agreements in the Foreign Trade Policy," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 9(1), pages 19-30, February.
    16. Mukunoki, Hiroshi, 2016. "Preferential trade agreements and antidumping actions against members and nonmembers," IDE Discussion Papers 611, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Puślecki Zdzisław, 2023. "The new protectionism between the USA and China and international trade policy amid worldwide geopolitical turbulence," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 125-151.
    18. Mavroidis, Petros C., 2011. "Always look at the bright side of non-delivery: WTO and Preferential Trade Agreements, yesterday and today," World Trade Review, Cambridge University Press, vol. 10(3), pages 375-387, July.
    19. Tovar, Patricia, 2019. "Preferential and multilateral liberalization: Evidence from Latin America’s use of tariffs, antidumping and safeguards," Journal of Development Economics, Elsevier, vol. 141(C).
    20. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.

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    JEL classification:

    • F1 - International Economics - - Trade
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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