Strategic Behavior And The United States Unfair Trade Statutes

Download or read book Strategic Behavior and the United States Unfair Trade Statutes written by Jeffrey W. Steagall and published by Routledge. This book was released on 2017-10-10 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, first published in 1995, analyses both theoretically and empirically the effects of a material injury clause of the type found in the Trade Act of 1979 on the behaviour of the dumping or subsidised foreign and import-competing domestic industries. The insight underlying the investigation is that the existence of such a material injury clause in an unfair trade law presents a moral hazard for representatives of the industry because it implies that tariff protection is more likely when the ITC perceives the injury to the US industry to be greater. Therefore, an incentive exists for the US industry to let itself be (or appear to be) injured today in order to benefit from tariff protection in the future.