Extent of Protection via Anti-Dumping Law: A Case Study of the Vitamin C Industry in India

Journal of World Trade, Vol. 39, No. 5, 2005

Posted: 7 Aug 2008

See all articles by Shavin Malhotra

Shavin Malhotra

Carleton University - Eric Sprott School of Business

Sumeet Gulati

affiliation not provided to SSRN

Nisha Malhotra

University of British Columbia

Date Written: 2005

Abstract

We look at the trade effects of antidumping (AD) policy in the Vitamin C industry in India. We find that AD is very effective in restricting imports from the countries that are named to be dumping. However, we also find a strong evidence of trade diversion: imports are diverted away from the named source country to the nonnamed countries. More over, after the imposition of AD duties on the named countries there is an influx of new entrants. Countries that were not supplying Vitamin C to India earlier now become an important source of imports. Our study highlights how the entry of alternate foreign suppliers (new entrants) significantly mitigates the restrictive effect of AD Law. It has been suggested in the literature (Prusa (1996)) that multiple petition filing or using the cumulation amendment is one way to curb import diversion. However, our study shows that the entry of new foreign suppliers could lend such a solution ineffective, as these foreign suppliers enter the market only after the petition has been filed. This case study also highlights the possibility of abuse of the AD law by the domestic industry. One way to mitigate abuse is for national authorities to incorporate the views of the importing industry in its decision making process.

Keywords: Antidumping, Import Diversion, India, Vitamin C

JEL Classification: F1

Suggested Citation

Malhotra, Shavin and Gulati, Sumeet and Malhotra, Nisha, Extent of Protection via Anti-Dumping Law: A Case Study of the Vitamin C Industry in India (2005). Journal of World Trade, Vol. 39, No. 5, 2005 , Available at SSRN: https://ssrn.com/abstract=1210002

Shavin Malhotra

Carleton University - Eric Sprott School of Business ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S SB6
Canada

Sumeet Gulati

affiliation not provided to SSRN ( email )

Nisha Malhotra (Contact Author)

University of British Columbia ( email )

997-1873 East Mall
Vancouver, BC V6T1Z1
Canada

HOME PAGE: http://www.econ.ubc.ca/nmalhotra/homepage.htm

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
823
PlumX Metrics