Alternative Approach to Causation Analysis in Trade Remedy Investigations: ‘Cost of Production’ Test

Dukgeun Ahn and William J. Moon

Chapter 3 in The Legal and Economic Analysis of the WTO/FTA System, 2016, pp 71-100 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Causation requirement in trade remedy investigations has produced significant controversy in terms of legal interpretation and economic analysis. Deficient treaty texts and confusing legal ruling have exacerbated practical difficulty for investigating authorities to ensure World Trade Organization (WTO) consistency. Various analytical models that were proposed on the basis of more articulated economics often turn out to be too complicated to apply in broader cases or critically contingent on data availability. We suggest an alternative approach that utilizes firm production costs to complement the previous models.

Keywords: World Trade Organization; Trade Remedy; Dispute Settlement; Free Trade Agreement (search for similar items in EconPapers)
JEL-codes: F42 (search for similar items in EconPapers)
Date: 2016
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