countervailing duties

Tougher Trade Enforcement Means What, Exactly?

In Asia, especially, many people are also puzzled about how dumping is determined.  After all, costs in this region are much lower than costs in North America.  If you are just comparing costs of production, Asia could be found “guilty” all the time of dumping.  Ah—this gets to an interesting problem with trade remedies.  The methods used for determining “guilt” are, indeed, a major issue.  When the US argues that it will engage in tougher enforcement, part of what it means is that it will more aggressively pursue trade remedies.  Officials will crack down on firms assumed to be dumping stuff into the American market.  Expect to hear a lot more about AD and CVD in the coming weeks and months, including more new and novel ways to interpret trade remedies with potentially serious implications for firms.