Regulacion antidumping

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Public Disclosure Authorized

and External Affairs Policy,Research,

WORKING PAPERS
Trade Policy

CountryEconomics Department ne Worio hanK October1991

WPS783

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The Originsand Evolttion of Antidumping Regulation

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-A; -;_I Mitchael FG11 0. K 1ingr

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Antidumping is ordinary trade protectionwith a grand public relations program.

ThePohlcy,Rccar h, and Lxternal Affairs Comrrplet dtnhibntes PRI, WorLng Papers to disceminale Lhcfindings of wov. progres, and or to cncourage thc exchange ideas among Bank staff and a' otherhmnter"stud developmrent ssucsThese of in papcrs carry Lhenarnes of tie ajthors, reflect only theu vsews, and %houidhc uscd and cited accord&n& The findungs,ntterpretauons.and conclusions are the aLhors' own Thce should not be attohuted to the Wo,r;d l3ank. I%hBoard DliteLors% rr.anagrmrent,ot an) of iLtmember colmnrcs of u.s

Policy,Research, and ExternalAffairs

TradePolicy

WPS783

This paper- - a product of the Trade Policy Division, Country Economics Departmcnit- is part of a larger cffort in PRE to understand the economics of tile emergence of"fairncss" as a standard for regulating intemational trade, its implications for the continued openncss of the international trading system, anidits continued functioning as an important vehicle lor development. This was fulided by the researcb project on "Regulations Against Unfair Imxorts: Effects on Developing Countries" (RPO 675-52). Copies are available free from the World Bank, 1818 HStreet NW, Washington DC 2(M.3. Please contact Nellie ArLis, room NI0-01 3, extcnsionl 37947 (51 paiges). October 1991. From the beginning, antidumping has been part of the rhetoric and mechanics of ordinarv protection. The protectionist action is in antidumping because it is broad and flexible enough to handle all the action. The magic of antidumping is how it harnesses the righteousness oftrust-busting to propel die hureaucratics of customs valuation to restrict iniports. Antiduniping began as an extension of antitrust regulation, but onl) when enforcement became an application of customs it valuation procedures WJd become an ef11ctivc
weapon against imports.

a domestic onc arid the apparent victim a loreign one. Antidumping is tilc lox pot in chlrlge of thc henhouse: traderesitrictionsccrtilicd by GAYI'. The fox is clever enough not onl\ to cat thc hcns., but also to convince the farmer that this is thc way things ought to he. Antidumping is ordinar) protection with z;orand public relaitionsprooram. Thc hiistor oftaniltidumpinlg (tprcsented tilii in paper) suggests that we pay tribuic to the durability of an idea. '[hc notionlthat UJndcrliCes contemporary antidumping-- thatprotection should bring the price of' imports up to a level that would co\cr I production costs plus a reas. nable allowance lor profit -- scems io bc onc lforthe agcs It inspired Canada's pioneering development o1 antidumping in 1904. the U.S. Coiigi. cbsa'sw" ritinigof thieSnioot-iia\wic\ Tariff in 1930, and it is today tic potential loundation for Fortress Europe.

In both theor) and practice,antitrust is an instrument to defend the public iiiterest. But antidumping is difhcrent. Frec of the constrainits that rule of law impose on antitrust, antidumping ;I.411 ulll2llt i,."t 61 UiITLLILUI can; uc against anolher- like advertising, product development, or price discounting. The onl) beneficiar) interest must be constraint is that thCe

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