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- Title
- The Hidden Protectionism in the U.S. Trade Policy: Antidumping and Countervailing Duties
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- Author
- Youngmin Kwon
- Type
- Research Reports
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- Subject
- International Trade
- Publish Date
- 2005.06.10
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- File
- -
- View Count
- 20814
The United States is often regarded as the most prominent supporter for the idea of free trade. However, the U.S. also is one of the most frequent users of antidumping and countervailing measures, which are frequently criticized in academic field as the so-called administered protections. This book closely scrutinizes the protectionist U.S. trade policies, embedded in its antidumping and countervailing practices. This book begins with how and when such protectionist schemes developed into the U.S. trade policies by examining the evolution of trade laws and political struggling around between the president and the congress. Then antidumping, countervailing, safeguard, and other protectionist measures are examined in some details. Especially, it includes the origin of antidumping concept in 16th century England, the first enactment of the current type law in Canada at the beginning of 20th century, and the U.S. dealings of antidumping as in a part of antitrust scheme in early years. Upon examining the current procedures, this book looks at the theoretical backgrounds for antidumping and countervailing duties and finds that the current practices often have no theoretical basis and punish the deed which in fact are welfare improving for the importing countries. Then, the current practices are criticized as they are biased in favor of their own industries and abused of excessive administrative convenience. Although the current procedures can be criticized as protectionists, if they are effective in protecting domestic industries from quick shrinking and helping them to recover, they still can be worth of having than not. Unfortunately, however, it is not the case found in many academic studies and this book presents some of the recent research results to make the points. The later part are dealing with the U.S. practices against Korea since 1970s and how they affects Korean exports to the U.S. Even though, it is only around 1% of the annual Korean exports to the U.S. that are under the influence of antidumping and countervailing duties, its impact are usually severe for each individual product category and its producers. This book concludes with recommendation for business and government of Korea. Although it is the best to abolish entire practice of antidumping and countervailing in the long run, however for now, business and government need to work together not to be a target and, once got targeted, to get out as early as possible. Especially, businesses should be prepared by such as associations with local producers, cooperation among exporters, diversification of product locations, and so on.
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