Alternative Approach to Causation Analysis in Trade Remedy Investigations: ‘Cost of Production’ Test

Citation data:

Journal of World Trade, Vol. 44, p. 1032, 2010

Publication Year:
2010
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SSRN
SSRN Id:
1601531
Author(s):
Dukgeun Ahn; William J. Moon
Tags:
international trade; international economic law; causation; safeguard; countervailing; antidumping; WTO; trade remedy law; USITC
paper description
Causation requirement in trade remedy investigations has produced significant controversy in terms of legal interpretation and economic analysis. Deficient treaty texts and confusing legal ruling have exacerbated practical difficulty for investigating authorities to ensure WTO consistency. Various analytical models that were proposed on the basis of more articulated economics often turn out to be too complicated to apply in broader cases or critically contingent on data availability. We suggest an alternative approach that utilizes firm production costs to complement the previous models.