Is an Anti-Circumvention System of Anti-Dumping Duty Needed? Evidence from the Korea Import Case
32 Pages Posted: 4 Oct 2023
Date Written: September 28, 2023
This paper aims to analyze the anti-dumping duty effect, the change of trade pattern after imposition of tariff, the new phenomenon of circumvention activities and to present a domestic legal framework by reviewing the necessity and validity of an anti-circumvention approach to the anti-dumping duty. The difference-in-differences (hereinafter “DID”) methodology is a statistical technique used to estimate the causal effect of a case dealing with an imposition of an anti-dumping tariff on the import volume of butyl glycol ether and perosilico manganese. An empirical analysis using the DID model showed that after anti-dumping tariffs were imposed, imports from targeted countries declined sharply, but imports of similar products from third countries rose significantly. To ensure the effectiveness of protection for the domestic industry against circumvention dumping, a regulatory system for circumvention dumping must be established in Korea. To reduce uncertainty in world trade due to different standards and operations of individual countries and to enhance the predictability of anti-circumvention regimes, a unified circumvention rule within the World Trade Organization’s (WTO) multilateral trade system would be ideal.
Keywords: circumvention, anti-dumping duty, trade pattern, DID
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