# **Antidumping, Safeguards, and Countervailing Duty Policies**

Antidumping, safeguards, and countervailing duty policies are other types of trade policy barriers.<sup>8</sup> After the global financial crisis of 2008/9, many developed and developing countries increased the use of TTBs to protect domestic industries, thereby constraining trade. Between 2007 and 2009, seven major emerging economy G20 members collectively increased by roughly 40% the share of non-oil import product lines affected by this type of restriction (Bown, 2012). Table 12 summarizes newly constructed indicators of TTBs, which have been assembled by Bown (2012). Column 2 of Table 12 reports the share of import product lines, at the 6-digit Harmonized System level, over which the policy-imposing economy had at least one import-restricting TTB in effect in 2011. This measure captures the stock of products covered by the accumulation of TTBs over time and were in effect in 2011. Columns 4 through 8 present other indicators constructed with trade data.

Table 12. TTB Polic ~~Product line share of~~ <u>y-Imposing Economies and Affected Imports in 2011</u>

|Country|All TTBS in<br>2011<br> <br>impo|All TTBs in<br>2001<br> <br>rts|All TTBS|AD only<br>2011 Trade-|from China<br>Weighted shar|from other<br>emerging<br>economies<br>e of imports|from high-<br>income<br>economies|
|---|---|---|---|---|---|---|---|
|China|1.4|0.3|3.2|3.2|.|1.1|3.9|
|Indonesia|1.8|0.9|1.2|0.8|2.4|1.5|0.8|
|Malaysia|<0.1|<0.1|0.2|0.2|<0.1|0.4|0.1|
|European Union|3.1|2.3|1.8|1.7|4.2|1.2|0.8|
|Korea|0.6|0.6|0.4|0.4|0.6|0.9|0.1|
|Japan|<0.1|0.1|<0.1|<0.1|<0.1|<0.1|<0.1|

Notes: shares of nonoil imports. TTB=temporary trade barriers, AD=Antidumping. All includes:India, Turkey, China, Argentina, Brazil, Indonesia, South Africa, Mexico, Pakistan, Peru, Thailand, Colombia, Malaysia, Philippines, Chile, United States, European Union, Canada, Australia, South Korea, Japan, New Zealand, Israel, Taiwan.

Source: Bown (2012).

The EU is the trading partner that subjects the highest percentage of import lines to at least one TTB, 3.1%. Indonesia and China follow in the list, with 1.8% and 1.4% of the products affected by antidumping, safeguards and/or countervailing measures. Korea, Malaysia, and Japan are the least protectionist countries. Less than 0.1% of the product lines have at least one TTB. If we compare the share of goods affected by at least one TTB between 2001 and 2011, we observe that half of the trading partners increased their coverage during the period analyzed. The increment varies between 0.8 and 1.1 percentage points for the EU and China, respectively.

China is the trading partner with the largest proportion of imports affected by a TTB, 3.2%, followed by the EU, 1.8%. Antidumping measures are very important in the EU as more than 90% of the share of imports affected by at least one TTB is subjected to an antidumping policy. The percentage of imports coming from an emerging economy (excluding China) that are affected by a TTB varies between 0.1% for

> 8 Anti-dumping duties are allowed under GATT’s Article 6 to be imposed on goods that are deemed to be dumped and causing injury to producers of competing products in the importing country. Safeguard measures are actions taken to protect a specific industry from an unexpected build-up of imports— generally governed by Article 19 of GATT. Countervailing measures are actions taken by the importing country, usually in the form of increased duties, to offset subsidies given to producers or exporters in the exporting country.

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