In this paper two key costs of AD protection are documented. First, once AD has been adopted, countries often have a difficult time restraining its use. In recent years 'new' users have accounted for half of the overall world total. Many of the heaviest AD users are countries who did not even have an AD statute a decade ago. Second, I will show that that, on average, AD duties cause the value of imports to fall by 30-50 per cent. I find that trade falls by almost as much for settled cases as for those that result in duties. I also find that, even for those cases that are rejected, imports fall.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics