East Asia's Anti‐dumping Problem

Abstract

East Asia accounts for a large and growing share of worldwide anti-dumping (AD) activity. East Asian countries have long been the main targets of AD actions, accounting for about one-third of all AD actions during the 1980s, more than 40 per cent of all AD actions during the 1990s, and almost 50 per cent of all AD actions in recent years. After controlling for factors that might influence filings such as the exchange rate and trade volume, it is found that East Asian countries are subject to about twice as many cases as either North American or Western European countries. Moreover, the trend in filings against East Asian countries is increasing, meaning that in recent years the propensity for countries to direct their AD filings against East Asian countries is growing. One concern is that the growing intensity of AD use against East Asia is driven by China-PRC. Importantly, but a rising propensity is found even excluding China-PRC. Copyright 2006 The Author Journal compilation 2006 Blackwell Publishing Ltd .

Determinants of EU antidumping actions against East Asian countries

“…According to Prusa (2006), WTO members reported 1.441 antidumping investigations, compared to only 115 countervailing duty investigations and 61 safeguard investigations between 1995 and 2000. The dramatic rise in antidumping actions could reflect an increase in dumping activities or an increasing awareness (e.g.…”

“…Until now, the most countries have established their own antidumping law (Figure 1) and antidumping measures has become the most popular instrument of protectionist trade policies. According to Prusa (2006), WTO members reported 1.441 antidumping investigations, compared to only 115 countervailing duty investigations and 61 safeguard investigations between 1995 and 2000. The dramatic rise in antidumping actions could reflect an increase in dumping activities or an increasing awareness (e.g.…”

“…The global share of East Asian countries in antidumping cases increased from 28 percent in the period 1980‐1984 up to 48 percent in the period 2000‐2002. In contrast with their popularity as targets, the East Asian countries themselves initiate less than 5 percent of global antidumping actions (Prusa, 2006, p. 744). Looking at the intensity of antidumping investigations after 2000 only and normalising antidumping investigations by the value of exports to create an intensity measure, compared to Japan (set to 100 as a benchmark), China showed an antidumping target intensity of 653, Korea of 405, and Taiwan of 311.…”

Political considerations in the protectionism against the transition economies

“…Using probit estimation method, Mah (2006) tried to reveal the microeconomic determinants of antidumping duties in the United States. Prusa (2006) revealed that with respect to antidumping duties East Asia is definitely treated differently than all other parts of the world, using macroeconomic variables as the determinants of the antidumping duties.…”

“…The current international trade regulations include provisions allowing the importing countries to investigate and impose the antidumping duties against the exports of the transition economies for social or political considerations. Authors such as Finger et al (1982), Moore (1992), Baldwin and Steagall (1994), Hansen and Prusa (1996), Leidy (1997), Mah (2000a), Lee and Mah (2003), Nielsen and Rutkowski (2005), and Prusa (2006) tried to reveal the determinants of antidumping duties. However, they did not consider the social and political factors such as labor standards and different degrees of democraticness as the determinants of antidumping duties.…”