Free video lecture for b.tech

Editor's Notes

1. In my presentation today, I will talk a little about why some countries might undertake dumping and the Antimdumping legislation in the US I he main aim of this presentation is to consider, the impact that restricting imports might have on domestic competition I am not here to discuss whether AD legislation is just or not. But to look at some cases in the chemical industry and see the impact of import restriction on domestic competition.
2. Dumping: Surplus Shock or Demand shock Strategic behaviour: Entry; Predatory pricing behavior Price competition between markets
3. The process takes about seven months from when the CBSA starts an investigation until the Tribunal makes a final decision on the injury matter. The process takes about seven months from when the CBSA starts an investigation until the Tribunal makes a final decision on the injury matter. The process takes about seven months from when the CBSA starts an investigation until the Tribunal makes a final decision on the injury matter. The process takes about seven months from when the CBSA starts an investigation until the Tribunal makes a final decision on the injury matter.
4. Antidumping an important trade policy that affects a large proportion of imports in Canada, and requires better understanding of its use and its effect on trade.
5. Chemical industry-Is the second largest user of Antidumping duty after the steel industry An important feature of the chemical industry is that the optimum scale of production is rather large. Implying that one would observe fewer and larger producers in an industry. In this industry the impact of AD legislation on competition is relatively strong. Since, the domestic producers are few in number. Between 1990 and 1999, there were 55 petitions for import restriction Out of which 73% of the cases were filed by single firms. (IN other industries you would observe a few firms getting together to file a petition) And, in most of these cases single firms were the sole producers of the product. (statistics-can’t say because the reports where I go the data tend to mention the larger producers)
6. Here is a list of the cases for which I was able to get complete data. These cases account for 22 of the 55 cases Let me explain this table- Take polyvinyl alcohol, 4 petitions, or cases were filed against 4 countries. 3 of these cases were given an affirmative decision and 1 was given a negative decision So imports from 3 countries were imposed with ADD Most of these products are produces by a very few firms and this is where one has to be concerned about reducing competition. Sulfanilic acid also has only one large producers, an affirmative decision in this case also somewhat eliminates the domestic competition.
7. Rhone-Poulenc. Facing competition from imports coming in from china. The petitioner not only filed a case under the US AD ligislation but also under the EU AD legislation. Thus restricting imports from china in both it’s market.
8. The Antidumping legislation in the US is designed to protect the domestic industry from unfair imports. In case imports are being dumped in the country, AD authorities would impose restrictions on the imports This would protect domestic industries from unfair trade but at the same time this would reduce competition in the domestic markets This shouldn’t be of concern if the domestic market had a large number of producers but for industries consisting of a few producers this can drastically impact the domestic competition. Chemical industry-one important feature of chemical industry is that the optimum scale of production are rather large. Which would imply that one would observe fewer producers in an industry. And, of course, the benefits or gains from competition would be adversly affected. There might be lesser of an incentive to innovate and grow.