Anti Dumping Indian Experience and Comparative Perspective

Abstract

There has been substantial research on the trade effects of Anti-dumping actions of newlinedeveloped countries, particularly US and EU. Unfortunately there is little empirical newlineresearch on developing countries like India, Brazil, Mexico and Argentina. This study newlinewill, therefore, help to bridge this gap and contribute to the existing literature in different dimension. As far as India is concerned, previous studies are more than a decade old and so they need up-gradation. India has emerged as a top AD user country with over 700 AD initiations in post -WTO era. This study assesses the trade effects of Indian AD initiations on the imports from the major Indian AD targets during the period 2003-2014. The analysis is carried out using the System Generalized Method of Moments (GMM) in dynamic panel data model (Arellano-Bond method). The result shows that the Indian AD policy has been ineffective in providing contingent protection to the domestic industry. Though the price effect of antidumping duty imposition is seen to be significant but the import quantity has not changed considerably. Thus, we rule out the possibility of trade diversion from named countries to unnamed countries. This attempt has been made to assess the industry specific trade effects, where industries have been grouped on the basis of use-based classification and even on the basis of harmonized system code. The industry level analysis reveals trade distortions effects on some industries and there sufficient evidence of trade diversion in some industries. newline