An empirical analysis of US and EU antidumping initiation and decision

This paper examines the relationship between antidumping procedures and macroeconomic factors, for both the US and EU. While recent research has considered the influence of domestic economic growth and exchange rate pressures on antidumping filings, this paper extends this work by using quarterly data and expanding the set of macroeconomic indicators to include the import penetration rate. Another contribution of this paper is to investigate more fully the rationale for a role of macroeconomic phenomena in explaining antidumping decisions by the relevant enforcement agencies. We use case-specific data for the US and the EU to investigate the macroeconomic and industry-level determinants of success. To the extent that macroeconomic indicators influence AD filing behavior (and success) in both the US and EU - implying that AD has become simply import protection rather than a remedy for unfair practices - it suggests the need for reform of WTO rules governing the administration of trade laws world-wide.