The Case to Repeal the Antidumping Laws
72 Pages Posted: 1 Nov 2016
Date Written: 1993
Antidumping laws were designed to protect domestic industry from foreign competition. They protect producers at the expense of consumers, which results in higher prices, lower quality products, less consumer choice and a general lowering of the standard of living for the vast majority of people. Antidumping laws also destroy more jobs than they create.
Part II reviews the theory and practice of antidumping laws in the United States. It looks at the economic and legal background of the area, the administration of the antidumping laws, and computational problems involved in arriving at an antidumping decision. It also provides examples of antidumping investigations in the areas of autos, steel, textiles, agricultural products, and televisions and discusses the harmful effects of antidumping policy. It also explores the predatory pricing argument as applied to antidumping.
Part III discusses some philosophical issues relating to antidumping law and policy. It views the antidumping laws as a club that can be used to batter the competition at the expense of consumers and questions the ethics of using government for this purpose. It also points out the silliness of antidumping policy, since it in effect protects consumers from low prices, and develops a rights-based argument against antidumping laws.
Part IV concludes that antidumping laws are harmful, serve no useful purpose and should be repealed, the sooner the better.
Keywords: Trade, Free Trade, Protectionism, Tariffs, Quotas, Antidumping, Ethics, Utilitarian, Rights, Rent Seeking, Predatory Pricing, U.S, United States, Korea
JEL Classification: D63, D72, F1, L61, L62, L66
Suggested Citation: Suggested Citation