Legal Framework
Purposes of trade remedy laws
08/12/2022
At their most basic level, all United States trade remedies are about restricting competition from foreign companies, so as to benefit domestic companies.
Variety of trade remedies
08/12/2022
In subsequent chapters the various trade remedies are discussed in some detail. This section simply sketches the laws and provides a general overview.
Frequency of use of different trade remedies
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As table 1 shows, the United States has applied its 'unfair trade' laws - anti-dumping and countervailing duties - to a variety of countries. Even excluding Japan, the Republic of Korea, the various European Union (EU) countries and other OECD countries - all frequent targets - there is an amazing number and range of cases against developing countries.
An anti-dumping or countervailing duty investigation is an administrative proceeding through which two United States Government agencies — the United States Department of Commerce (the Commerce Department) and the United States International Trade Commission (the Commission) — decide whether unfairly traded imports are injuring a United States industry.
Developing country rules
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Developing countries are entitled to a different rule for de minimis countervailing duty margins.
Initiation of the investigation
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An unfair trade investigation can begin in two different ways. The investigation usually begins when an 'interested party' (a domestic producer of the product in question, a labour union, or a trade association) files a petition with the Commerce Department and the Commission alleging that dumping or subsidization is taking place.
Preliminary injury determination
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Within 45 days after the petition is filed, the Commission must make a preliminary determination of whether there is evidence of injury to the domestic industry.
Questionnaire response
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Shortly after the investigation is initiated, the Commerce Department sends out a detailed questionnaire to foreign manufacturers and exporters of the merchandise under investigation.