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

Abstract:     
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.

Number of Pages in PDF File: 30

Keywords: international trade, international economic law, causation, safeguard, countervailing, antidumping, WTO, trade remedy law, USITC

Accepted Paper Series