Alternative Approach to Causation Analysis in Trade Remedy Investigations: ‘Cost of Production’ Test
Journal of World Trade, Vol. 44, p. 1032, 2010
30 Pages Posted: 19 May 2010 Last revised: 3 Oct 2010
Date Written: May 6, 2010
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.
Keywords: international trade, international economic law, causation, safeguard, countervailing, antidumping, WTO, trade remedy law, USITC
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