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Strategic Behavior and the United States Unfair Trade Statutes
Paperback
Series: Routledge Library Editions: International Trade Policy
ISBN13: 9781138296954
Publisher: Routledge
Published: Mar 12 2019
Pages: 250
Weight: 0.80
Height: 0.60 Width: 6.00 Depth: 9.20
Language: English
This book, first published in 1995, analyses both theoretically and empirically the effects of a material injury clause of the type found in the Trade Act of 1979 on the behaviour of the dumping or subsidised foreign and import-competing domestic industries. The insight underlying the investigation is that the existence of such a material injury clause in an unfair trade law presents a moral hazard for representatives of the industry because it implies that tariff protection is more likely when the ITC perceives the injury to the US industry to be greater. Therefore, an incentive exists for the US industry to let itself be (or appear to be) injured today in order to benefit from tariff protection in the future.
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