US-Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India: To Cumulate or Not Cumulate Products

28 Pages Posted: 19 Aug 2015 Last revised: 26 Aug 2015

See all articles by Alan Spearot

Alan Spearot

University of California, Santa Cruz

Dukgeun Ahn

Seoul National University

Date Written: July 17, 2015

Abstract

One of the key findings in this case deals with the appropriate method to determine material injury when imported products are subject to simultaneous anti-dumping and countervailing duty (CVD) investigations. Along with addressing a number of legal issues concerning CVD investigations, the Appellate Body clarified restrictions on cross-cumulation of injury, essentially prohibiting the current US practice, and implicitly raising the burden of proof for parallel claims of dumping and subsidies. This decision is justified on economic grounds, where cumulation imposes a counterfactual scenario against which marginal damages of dumping and subsidies by each country cannot be properly evaluated. However, what the legal rulings by the Appellate Body did not recognize is the economic reality that many like products produced by the firms alleged to have received subsidies were selectively absent from the investigation, which more generally complicates the assessment of injury in dumping and subsidy cases.

Keywords: cumulation, countervailing duty, carbon steel

JEL Classification: F00, F02

Suggested Citation

Spearot, Alan and Ahn, Dukgeun, US-Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India: To Cumulate or Not Cumulate Products (July 17, 2015). Available at SSRN: https://ssrn.com/abstract=2645797 or http://dx.doi.org/10.2139/ssrn.2645797

Alan Spearot

University of California, Santa Cruz ( email )

1156 High St
Santa Cruz, CA 95064
United States

Dukgeun Ahn (Contact Author)

Seoul National University ( email )

Graduate School of International Studies
Sillim, Kwanak-gu
Seoul, 151-742
82-2-880-9249 (Phone)

HOME PAGE: http://gsis.snu.ac.kr

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