How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel
- 491 Downloads
Use of temporary trade barriers (TTBs) has proliferated across countries, industries, and even policy instruments. We construct a panel of bilateral, product-level US steel imports that are matched to a unique data set on trade policy exclusions that are associated with the 2002 US steel safeguard in order to compare the trade impacts that result from application of various TTB policies over 1989–2003. We find that the trade effects of an applied safeguard—which is statutorily expected to follow the principle of nondiscriminatory treatment—can nevertheless compare closely to the application of the explicitly discriminatory antidumping policy. Our results on trade policy substitutability complement other recent research on these increasingly important forms of import protection.
KeywordsSafeguards Antidumping Countervailing duties Temporary trade barriers MFN
- Bagwell, K., & Staiger, R. W. (1990). A theory of managed trade. American Economic Review, 80(4), 779–795.Google Scholar
- Bown, C. P. (2012). Temporary trade barriers database. Retrieved December 18, 2012 from World Bank website: http://econ.worldbank.org/ttbd/.
- Bown, C. P., & Crowley, M. A. (2005). Safeguards. In P. F. J. Macrory, A. E. Appleton, & M. G. Plummer (Eds.), The World Trade Organization: Legal, economic and political analysis (pp. 43–66). New York: Springer.Google Scholar
- Bown, C. P., & Crowley, M. A. (2011). Import protection, business cycles, and exchange rates: evidence from the Great Recession. Journal of International Economics. (in press).Google Scholar
- Bown, C. P., & Crowley, M. A. (2013). Self-enforcing trade agreements: evidence from time-varying trade policy. American Economic Review, 103(2), 1071–1090Google Scholar
- Johnson, H. G. (1953–4). Optimum tariffs and retaliation. Review of Economic Studies, 21(2), 142–53.Google Scholar
- Krishna, P. (2004). The economics of preferential trade agreements. In E. K. Choi & J. Hartigan (Eds.), Handbook of international trade (Vol. II, pp. 294–312). Malden, MA: Blackwell Publishers.Google Scholar
- Miranda, J., Torres, R. A., & Ruiz, M. (1998). The international use of antidumping: 1987–1997. Journal of World Trade, 32(5), 5–71.Google Scholar
- Prusa, T. J. (1997). The trade effects of U.S. antidumping actions. In R. C. Feenstra (Ed.), Effects of U.S. trade protection and promotion policies (pp. 191–213). Chicago, IL: University of Chicago Press.Google Scholar
- Rosegrant, S. (2002). Standing up for steel: The US government response to steel industry and union efforts to win protection from imports (1998–2001). Kennedy School of Government Case Program, Harvard University.Google Scholar
- Staiger, R. W., & Wolak, F. A. (1994). Measuring industry-specific protection: antidumping in the United States (pp. 51–118). Brookings Papers on Economic Activity: Microeconomics, 51–118.Google Scholar
- USTR (2004a). “Information on product exclusion requests under Section 203”. Retrieved March 28, 2004 from USTR website, http://www.ustr.gov/sectors/industry/steel201/203update.htm.
- USTR (2004b). “President Bush Takes Action on Steel”. Retrieved February 29, 2004 from USTR website: http://www.ustr.gov/sectors/industry/steel.shtml.
- Viner, J. (1950). The customs union issue. New York: Carnegie Endowment for International Peace.Google Scholar