The Impact of PTAs on the Duration of Antidumping Protection

This paper examines the impact of preferential trade agreements on the duration of antidumping protection. It employs a two-step selection model where the first step accounts for the impact of preferential trade agreement membership on the original...

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Main Authors: Prusa, Thomas J., Zhu, Min
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/608151619122450659/The-Impact-of-PTAs-on-the-Duration-of-Antidumping-Protection
http://hdl.handle.net/10986/35515
id okr-10986-35515
recordtype oai_dc
spelling okr-10986-355152022-09-20T00:10:03Z The Impact of PTAs on the Duration of Antidumping Protection Prusa, Thomas J. Zhu, Min PREFERENTIAL TRADE AGREEMENTS ANTIDUMPING TRADE PROTECTION PROTECTION DURATION This paper examines the impact of preferential trade agreements on the duration of antidumping protection. It employs a two-step selection model where the first step accounts for the impact of preferential trade agreement membership on the original antidumping determination, and the second step estimates the impact of preferential trade agreement membership on the duration of duties. Several key findings emerge from the analysis. Most importantly, the duration of antidumping protection is significantly shorter for preferential trade agreement members, compared with targeted countries that are not preferential trade agreement members. The estimates imply that preferential trade agreement membership is associated with a 30 percent reduction in the duration of protection. Second, the impact on duration depends, in part, on whether the preferential trade agreement has rules specifically related to antidumping. On average, over all users and targeted countries, the impact on duration is about twice as large for preferential trade agreements with rules, compared with those with- out rules (and both have shorter duration than non-preferential trade agreement members). Third, the duration of antidumping measures has increased markedly over time, primarily due to cases in the right tail of the distribution. This is consistent with the widespread belief that the Uruguay Round's sunset review provisions did not produce the result that many World Trade Organization members sought, but it also reflects the growing fraction of cases targeting China. Although the rising fraction of cases against China partly explains why duration has increased, it does not explain the finding with respect to the impact of preferential trade agreements and duration. 2021-04-29T13:57:59Z 2021-04-29T13:57:59Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/608151619122450659/The-Impact-of-PTAs-on-the-Duration-of-Antidumping-Protection http://hdl.handle.net/10986/35515 English Policy Research Working Paper;No. 9638 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PREFERENTIAL TRADE AGREEMENTS
ANTIDUMPING
TRADE PROTECTION
PROTECTION DURATION
spellingShingle PREFERENTIAL TRADE AGREEMENTS
ANTIDUMPING
TRADE PROTECTION
PROTECTION DURATION
Prusa, Thomas J.
Zhu, Min
The Impact of PTAs on the Duration of Antidumping Protection
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper;No. 9638
description This paper examines the impact of preferential trade agreements on the duration of antidumping protection. It employs a two-step selection model where the first step accounts for the impact of preferential trade agreement membership on the original antidumping determination, and the second step estimates the impact of preferential trade agreement membership on the duration of duties. Several key findings emerge from the analysis. Most importantly, the duration of antidumping protection is significantly shorter for preferential trade agreement members, compared with targeted countries that are not preferential trade agreement members. The estimates imply that preferential trade agreement membership is associated with a 30 percent reduction in the duration of protection. Second, the impact on duration depends, in part, on whether the preferential trade agreement has rules specifically related to antidumping. On average, over all users and targeted countries, the impact on duration is about twice as large for preferential trade agreements with rules, compared with those with- out rules (and both have shorter duration than non-preferential trade agreement members). Third, the duration of antidumping measures has increased markedly over time, primarily due to cases in the right tail of the distribution. This is consistent with the widespread belief that the Uruguay Round's sunset review provisions did not produce the result that many World Trade Organization members sought, but it also reflects the growing fraction of cases targeting China. Although the rising fraction of cases against China partly explains why duration has increased, it does not explain the finding with respect to the impact of preferential trade agreements and duration.
format Working Paper
author Prusa, Thomas J.
Zhu, Min
author_facet Prusa, Thomas J.
Zhu, Min
author_sort Prusa, Thomas J.
title The Impact of PTAs on the Duration of Antidumping Protection
title_short The Impact of PTAs on the Duration of Antidumping Protection
title_full The Impact of PTAs on the Duration of Antidumping Protection
title_fullStr The Impact of PTAs on the Duration of Antidumping Protection
title_full_unstemmed The Impact of PTAs on the Duration of Antidumping Protection
title_sort impact of ptas on the duration of antidumping protection
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/608151619122450659/The-Impact-of-PTAs-on-the-Duration-of-Antidumping-Protection
http://hdl.handle.net/10986/35515
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