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The economic effects of withdrawn antidumping investigations: is there evidence of collusive settlements?
Authors:Christopher T Taylor
Institution:Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, USA
Abstract:This paper analyzes the effects of antidumping cases initiated from 1990 to 1997 that ended in withdrawn petitions without a suspension agreement or voluntary restraint agreement. Monthly import data are used to estimate the price and quantity effects of the withdrawn cases. The estimated effects of the petition being withdrawn do not support the accepted wisdom that withdrawn petitions are a signal of collusion. This is an important issue, since out-of-court settlements of unfair trade cases which restrict quantities or increase prices are not only welfare reducing but are also actionable under the antitrust laws; they are not exempt under the Noerr-Pennington doctrine.
Keywords:Antidumping  Trade protection  Collusion
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