In this paper we analyze whether U.S. Anti-Dumping (AD) duties in the agricultural sector are effective in restricting trade. More specifically, does imposition of an antidumping duty restrict imports of the named commodity or is there a diversion in the supply of imports from countries named in the petition to countries not named in the antidumping petition? We find that AD duties have had a significant impact on the imports of agricultural commodities from the countries named in the petition. However, our results also indicate that, unlike the manufacturing sector in the US, there was little trade diversion towards countries not named in the AD petition. Our results indicate that AD is a plausible protectionist policy in the Agriculture sector.
- Trade Diversion
Available at: http://works.bepress.com/nisha_malhotra/11/