Author: Lucy Davis

    Trade Policy Analyst at ECIPE 

Abstract

Anti-dumping is at the heart of EU trade policy. Its use is justified on the grounds of eliminating injurious dumping by foreign firms and re-establishing conditions of ‘fair’ trade. Use of anti-dumping has been rising globally, generating concerns about the potential for protectionist abuse of this trade defence instrument. Most economists are of the opinion that anti-dumping has little to do with ‘unfair’ trade. In general, suspicions are high that domestic industries are turning to anti-dumping as a form of protectionism, and that the EU’s current anti-dumping laws support their efforts. This paper takes an in-depth look at the past ten years of anti-dumping usage in the EU. The analysis draws on information from the 287 anti-dumping cases initiated between 1998 and 31 December 2008.

Five empirical tendencies have been identified:

1. The main targets of investigations and measures are exporters in emerging markets, particularly in Asia – a growing source of global competition;

2. Targeted products are concentrated in sectors where European comparative advantage is declining, i.e. raw materials, industrial input goods and textiles;

3. Dumping margins reflect this pattern, being particularly high in the chemicals and steel sectors;

4. Duty levels are significantly higher than bound tariffs, particularly in the higher-end technology sector;

5. Once an anti-dumping investigation has been initiated, definitive measures are the most likely outcome.