Safeguards and Antidumping in Latin American Trade Liberalization: Fighting Fire with Fire

by J. Michael Finger, Julio J. Nogues

Overview

Until the 1990s, the main users of safeguards and antidumping laws were Australia, Canada, the European Union, and the United States. Since then, many countries have implemented such laws, leading to a proliferation in antidumping and safeguard activity across the world. This timely book documents the political economy surrounding the implementation of these laws in seven Latin American countries and provides details on the institutions created, implementation of the laws, and subsequent activity. It finds that, in the larger political context, antidumping and safeguards are a necessary quid pro quo to certain important sectors to obtain much more liberalized trade policies for the general economy.

Product Details

ISBN-13:	9780821363096
Publisher:	World Bank Publications
Publication date:	12/02/2005
Series:	Trade and Development Series
Sold by:	Barnes & Noble
Format:	eBook
Pages:	425
File size:	2 MB

About the Author

ELÍAS BARACAT Professor Universidad de CEMA and formerly President, International Trade Commission of Argentina, Argentina
JOSEFINA CAMMINATI Attorney, Universidad Católica de Perú and formerly Consultant to the Legal Vice Ministerio Comercio, the Peruvian Exporters Association (ADEX), Peru
JORGE G. GONZÁLEZ Professor and Chair, Department of Economics, Trinity University, USA
HONORIO KUME Research Officer, Institute of Applied Economic Research (IPEA) and Professor, University of the State of Rio de Janeiro, Brazil
FRANCISCO MONGE-ARIÑO Associate, Costa Rican High Technology Advisory Committee Foundation (CAATEC) and Graduate Teaching Assistant, Ohio State University, USA
RICARDO MONGE-GONZÁLEZ Executive Director, Costa Rican High Technology Advisory Committee Foundation (CAATEC) and Professor of International Trade at the Universidad Latina de Costa Rica, Costa Rica
GUIDA PIANI Research Officer, Institute of Applied Economic Research (IPEA), Brazil
MAURICIO REINA Associate Investigator, Fedesarrollo and formerly Vice-Minister of International Trade, Colombia
LUZ ELENA REYES DE LA TORRE Partner, SAI Consultores and formerly Associate Director-General, Unit of International Trade Practices (UCPI), Mexico
SEBASTIÁN SÁEZ Consultant and formerly Alternate Representative of Chile to the WTO, Chile
RAÚL LEÓN THORNE Consultant on International Trade Negotiations and formerly Member of INDECOPI Commission on Antidumping and Safeguards
RICHARD WEBB Director, Economic Research Centre, University of San Martin de Porres and formerly President, Central Reserve Bank of Peru, Peru
SANDRA ZULUAGA Associate Investigator, Fedesarrollo and formerly Advisor to the Vice-Minister for International Trade of Colombia, Colombia

Table of Contents

	Preface	xi
	Acknowledgments	xv
	Contributors	xvii
	Abbreviations and Acronyms	xix
1	Introduction and Overview	1
2	Political Economy of Antidumping and Safeguards in Argentina	45
3	Antidumping and Safeguard Mechanisms: The Brazilian Experience, 1988-2003	79
4	Keeping Animal Spirits Asleep: The Case of Chile	109
5	Application of Safeguards and Antidumping Duties in Colombia	137
6	Antidumping Policies and Safeguard Measures in the Context of Costa Rica's Economic Liberalization	169
7	Antidumping and Safeguard Measures in the Political Economy of Liberalization: The Mexican Case	205
8	Antidumping Mechanisms and Safeguards in Peru	247
	Index	279
	Figures
2.1	Argentina: Real Exchange Rate, 1985-2002	49
2.2	Argentina: Trade Flows	50
2.3	Argentina: Antidumping Initiations and GDP Growth, 1995-2003	58
3.1	Indexes of Import Volumes, Real Exchange Rate, Real GDP, and Average Nominal Tariff Rate for the 1987-2003 Period	84
3.2	Brazil: Ratio of Import to Domestic Production Values for Certain Products, 1990 and 2002	85
3.3	Number of Antidumping Cases in Brazil, 1988-2003	94
3.4	Share of Approved Antidumping Cases in Brazil, 1988-2002	94
4.1	Chile: Tariffs and Real Exchange Rate, 1973-2003	111
4.2	Chile: Applications Submitted and Investigations Initiated, 1981-2002	114
5.1	Colombia: Average Tariff, 1986-2002	139
5.2	Colombia: Real Exchange Rate Index	140
5.3	Colombia: Number of Dumping and Safeguard Applications and Real Exchange Rate	151
5.4	Colombia: Textile and Apparel Imports	159
6.1	Costa Rica: Exports, Imports, and Average Tariff, 1982-2003	172
6.2	Costa Rica: Evolution of Share of Destination Countries for Main Exports	173
6.3	Costa Rica: Current Account Deficit, 1983-2003	174
6.4	Costa Rica: Evolution of Inflation and Real Effective Exchange Rate, 1983-2003	175
6.5	Costa Rica: Direct Foreign Investment Flows, 1970-2003	176
6.6	Costa Rica: Relative Importance of Nontraditional Exports, 1982-2003	176
6.7	Costa Rica: Composition of Exporting Firms, by Size of Firm, 2003	177
6.8	Costa Rica: Per Capita GDP, Open Unemployment, Underemployment, and Percentage of Households below Poverty Line, 1982-2003	177
6.9	Costa Rica: Degree of Liberalization and Per Capita GDP	178
6.10	Stages in the Process of a Dumping Complaint in Costa Rica, Pursuant to the Central American Rules	183
7.1	Investigations Initiated in Mexico, 1987-2003	219
7.2	Investigations Initiated and Over- and Undervaluation Margins of the Exchange Rate in Mexico, 1987-2003	219
7.3	Investigations Initiated in Mexico in Relation to Major Economic and Political Events, 1987-2003	220
7.4	Investigations in Mexico, by Sector, 1987-2002	221
8.1	Organizational Structure of the National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi)	255
8.2	Antidumping Procedure	261
8.3	Safeguards Procedure	263
8.4	Investigations and Antidumping Duties in Peru, 1993 to July 2004	268
	Tables
1.1	Colombia: Safeguard and Antidumping Investigations, 1990-June 2004	13
1.2	Mexico: Antidumping Duty Levels in Different Situations	19
1.3	Outcomes of Peru's Antidumping Investigations, 1993-June 2004	23
1.4	Applied Tariff Rates on Industrial Goods for Selected Latin American Countries	27
1.5	Antidumping Initiations as Notified to WTO, 1995-June 2004: Countries Included in the Study and Major Users	28
1.6	Antidumping Measures as Notified to WTO, 1995-June 2004	28
1.7	Countervailing Duty Initiations and Measures, 1995-June 2004	30
1.8	Numbers of Safeguard Initiations and Other Safeguard Actions Notified to the WTO by Selected Latin American Countries, 1996-October 18, 2004	32
2.1	Argentina: Ad Valorem Tariffs and Import Licenses, 1980-92	47
2.2	Argentina: Antidumping Investigations by Requesting Industries, 1995-2004	59
2.3	Argentina: Antidumping Investigations by Target Country, 1995-2004	60
2.4	Argentina: Percentage of Antidumping Measures Coverage	61
2.5	Argentina: Injury Determinations in Antidumping Investigations, 1995-2004	62
2.6	Argentina: Antidumping Measures	64
2.7	Argentina: Outcome Petitions under the Safeguards Agreement	69
2.8	Argentina: Petitions for Safeguards under the ATC Agreement	70
3.1	Brazil: Number and Percentage of Investigations with On-the-Spot Verifications for Injury and Dumping Determinations	89
3.2	Number of Antidumping Cases Initiated between 1995 and 2002-Main Countries	90
3.3	Countries Initiating the Largest Numbers of Safeguard Cases	92
3.4	Number of Antidumping, Antisubsidy, and Safeguard Cases Initiated by Brazil, 1987-2003	93
3.5	Brazil: Antidumping Cases by Group of Products, 1988-2002	96
3.6	Number of Antidumping Cases in Brazil with Final Determinations, Grouped by Exporting Country or Bloc	97
3.7	Antidumping Cases for Brazil: Preliminary Duty Rates, Normal Value Method, and Antidumping Duty as Percentage of Estimated Dumping Margin	98
3.8	Brazil: Cases Ended without a Restrictive Outcome, Classified by Motives	99
3.9	Brazil: Distribution of Antidumping Cases with a Final Determination, by Number of Domestic Firms	100
3.10	Brazil: Antidumping Cases and Selected Indicators, by Subperiods	100
3.11	Safeguard Measures in Brazil, 1996-2003	102
4.1	Chile: Development of Legislation, 1981-2000	112
4.2	Chile: Definitive Measures of the National Commission for Price Distortions and Sectors Affected	115
4.3	Chile: Investigation Procedure and Stages	119
4.4	Chile: Antidumping Duties, 1992-2002	123
4.5	Chile: Global Safeguards and Bilateral Agreements	126
4.6	Chile: Safeguard Investigations, 1999-2003	128
5.1	Preferential Tariffs Granted by Colombia: Liberalization Levels	141
5.2	Colombia: Investigations Conducted, 1990-2004	149
5.3	Colombia: Investigations by Sector, 1990-2004	152
5.4	Colombia: Dumping Investigations by Sector, 1990-2004	153
5.5	Colombia: Safeguard Dumping Investigations by Sector, 1990-2004	154
6.1	Costa Rica: Dumping Cases	191
6.2	Costa Rica: Summary of the Outcome of Dumping Cases Dealt with by Investigating Authority	192
6.3	Costa Rica: Refrigerator Imports, 1995-96	193
6.4	Costa Rica: Refrigerator Imports, 1994-2002	194
6.5	Costa Rica: Safeguard Cases	195
6.6	Costa Rica: Summary of the Outcome of Safeguard Cases Dealt with by Investigating Authority	196
6.7	Costa Rica: Origin of Imports of Cabuya Bags, 1992-95	197
6.8	Costa Rica: Summary of Cases Dealt with by Investigating Authority	198
6.9	Costa Rica: Summary of Cases Dealt with by Investigating Authority	199
7.1	Mexican Macroeconomic Indicators during Economic Liberalization	207
7.2	Mexican Comparative Tariff Structures in Selected Years	208
7.3	Antidumping, Antisubsidy, and Safeguard Proceedings Initiated in Mexico, 1987-2003	216
7.4	Resolutions Regarding Unfair Practices and Safeguards, 1987-2002	218
7.5	Initiated Investigations, Antidumping and Countervailing Duties, by Country and Region, 1987-2002	221
7.6	Investigations and Duties by Type of Good Imported to Mexico	222
7.7	The "China Package" and Other Cases against Chinese Products during 1993	225
7.8	Multicountry-Multiproduct Steel Package, 1992-93	226
7.9	Cases in Which the Lesser Duty Rule Was Applied, 1991-96	229
7.10	Cases in Which a Duty below the Dumping Margin Was Applied, 2001-4	232
7.11	Number of Tariff Items Subject to Antidumping Duties in 2002	238
7.12	Estimation of Mexican Total Trade Affected by Antidumping or Safeguard Measures, 2002	239
8.1	Number of Paratariff Restrictions in Peru	250
8.2	Main Reforms in Peru, 1990-2000	251
8.3	Proportion of Imports Covered by the New Tariff Rates in Peru, September 1990	252
8.4	Applications and Measures in Peru, 1993-2004	267
8.5	Antidumping Investigations in Peru, by Sector	270
8.6	Antidumping Investigations, by Country and Region	271