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Trade Remedies: A Primer

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Congressional rept.

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The United States and many of its trading partners use laws known as trade remedies to mitigate the adverse impact of various trade practices on domestic industries and workers. These laws are consistent with U.S. international obligations if they conform to the World Trade Organization WTO Antidumping, Subsidies, and Safeguards Agreements and to other trade agreements to which the United States is a party. U.S. antidumping laws 19 U.S.C. 1673 et seq. authorize the imposition of duties if 1 the International Trade Administration ITA of the Department of Commerce determines that foreign merchandise is being sold, or is likely to be sold in the United States at less than fair value, and 2 the U.S. International Trade Commission ITC determines that an industry in the United States is materially injured or threatened with material injury, or that the establishment of an industry is materially retarded, due to imports of that merchandise. A similar statute 19 U.S.C. 1671 et seq. authorizes the imposition of countervailing duties if the ITA finds that the government of a country or any public entity has provided a subsidy on the manufacture, production, or export of the merchandise, and the ITC determines injury. WTO dispute resolution panels and Appellate Body rulings have found that the United States is in violation of its WTO obligations with regard to two U.S. trade remedy laws the Continued Dumping and Subsidy Offset CDSOA, also known as the Byrd Amendment and the Antidumping Act of 1916. This report explains, first, U.S. antidumping and countervailing duty statutes and investigations. Second, it describes safeguard statutes and investigative procedures. Third, it briefly presents trade-remedy related legislation in the 109th Congress. The appendix provides a chart outlining U.S. trade remedy statutes, major actors, and the effects of these laws.

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  • Economics and Cost Analysis
  • Government and Political Science

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