Down in the Dumps: Administration of the Unfair Trade Laws

During the past decade the administration of the U.S. trade laws has become increasingly controversial. Trade experts have long questioned the methods used by the Department of Commerce, International Trade Administration, which is responsible for calculating dumping and countervailable subsidy rates on imported goods. This study is the first to bring together attorneys and economists who are experts in the area of trade to examine and criticize the Department's practices and recommend ways to improve them. The critical issue addressed in this book is how trade laws should be applied so that the results are consistent with both economic theory and business behaviour and with the obligations of the US and other countries under the General Agreement on Tariffs and Trade (GATT). Contending that the laws are administered in a way that tilts toward protectionism, Down in the Dumps suggests changes that would not require fundamental changes in law, but rather changes in the way it is administered. Chapters include Richard Boltuck and Robert Litan on an overview of the issues; Tracy Murray on dumping margins methodology; David Palmeter, Joseph Francoise and Jeffrey Anspacher on calculating subsidy rates; David Palmeter on the fairness of administrative procedures; and Robert Baldwin and Michael Moore on the political economy behind the administration of the trade remedy laws. The concluding chapter, by Terence Stewart, criticizes several of the earlier chapters from a persepctive that is generally supportive of current administrative practices.