The impact of preferential trade agreements on the duration of antidumping protection

Abstract

AbstractThis paper examines the impact of preferential trade agreements on the duration of antidumping protection. We employ a two‐step selection model where the first step accounts for the impact of membership in a preferential trade agreement on the original antidumping determination and the second step estimates the impact of membership in a preferential trade agreement on the duration of the measures. We find the duration of antidumping protection is about 17% shorter for preferential trade agreement members compared with targeted countries that are not preferential trade agreement members. The impact on duration depends largely on whether preferential trade agreements have rules related specifically to antidumping. Preferential trade agreements with rules are associated with a 28% reduction in the duration of protection, whereas the duration for preferential trade agreements without rules is not statistically different from the duration for non‐preferential trade agreement countries. While the duration of antidumping measures against China is longer than for other countries, the impact of preferential trade agreement rules is robust to controlling for China.