NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Protection Reduction and Diversion: PTAs and the Incidence of Antidumping Disputes

Thomas J. Prusa, Robert Teh

NBER Working Paper No. 16276
Issued in August 2010
NBER Program(s):   ITI

We analyze whether preferential trade agreements (PTAs) affect the incidence and pattern of antidumping (AD) filings. We estimate AD provisions in PTAs have decreased the incidence of intra-PTA AD cases by 33-55% and have increased the number of AD actions against non-PTA members by 10-30%. The net effect of PTA rules on total AD filings is small. Our results are robust to alternative estimation approaches and controlling for a myriad of other PTA-related phenomena. Our results suggest a protection analogue to the "trade creation-trade diversion" impact of PTAs. PTA members are spared from AD actions but non-PTA members face even greater AD scrutiny.

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Document Object Identifier (DOI): 10.3386/w16276

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