NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Joseph P. Kalt

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NBER Working Papers and Publications

January 1996Precedent and Legal Argument in U.S. Trade Policy: Do They Matter to the Political Economy of the Lumber Dispute?
in The Political Economy of American Trade Policy, Anne O. Krueger, editor
Do Precedent and Legal Argument Matter in the Lumber CVD Cases?
in The Political Economy of Trade Protection, Anne O. Krueger, editor
May 1994Precedent and Legal Argument in U.S. Trade Policy: Do They Matter To The Political Economy of the Lumber Dispute?
w4749
For more than a decade, the United States and Canada have been engaged in a rancorous dispute over trade in softwood lumber. Through three successive rounds of administrative litigation before the U.S. Department of Commerce, the U.S. sawmill industry has sought to have countervailing duties imposed upon Canadian lumber imports. The U.S. interests argue that Canada subsidizes its sawmills by providing timber from public forests at below-market prices, and by restricting exports of Canadian logs. This study examines whether, and to what extent, the institutional framework -- the legal rules, standards and precedents - - of CVD law influences the success or failure of the contending parties. Two alternative theories of political economy are tested. Capture Theory de-emphasizes the role of ...

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