The Trade Effects of European Antidumping Policy

Anti-dumping is a favoured policy for protecting import-competing industries by raising import duties on specific foreign goods. But it is a complex and un-transparent tool and its real trade effects are not always easy to understand. In this new paper, Arastou Khatibi asks whether it really is the whole European market that benefits from anti-dumping duties. His results show that anti-dumping depresses trade overall, but allows greater trade between globally uncompetitive European firms. The result is inefficiency and price increases for consumers and importers.