Inventories and antidumping: the case of orange juice trade

Colin Carter and Sandeep Mohapatra

Empirical Economics, 2013, vol. 45, issue 1, 247-266

Abstract: The United States and Brazil are key players in the international market for orange juice, mainly frozen concentrated orange juice (FCOJ). The U.S. orange juice industry benefits from one of the highest levels of import protection in U.S. agriculture. Additional trade protection was recently added with a U.S. industry victory in an antidumping trade suit against Brazil. We study the impact of FCOJ imports from Brazil on U.S. prices using time series econometric models and find only a weak FCOJ domestic price response to imports from Brazil, because extremely large U.S. inventories mute the price impact of any fluctuation in imports. Our findings imply that the antidumping tariffs were unjustified based on a material injury argument. Copyright Springer-Verlag 2013

Keywords: Trade remedy law; Antidumping; Commodity trade; F13; Q17 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s00181-012-0597-x

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