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Causing problems? The WTO review of causation and injury attribution in US Section 201 cases

Published online by Cambridge University Press:  28 April 2004

DOUGLAS A. IRWIN
DOUGLAS A. IRWIN
Affiliation:
Department of Economics, Dartmouth College
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Abstract

US safeguard actions have run into problems with the WTO's panel and Appellate Body reviews for failing to ensure that injury caused by non-import factors is not attributed to imports. This paper reviews the subtle legal and economic differences between US trade law (Section 201) and the WTO's Agreement on Safeguards on the non-attribution issue. The paper then resurrects the Kelly (1988) method of attributing injury to various factors as a potential method by which the ITC can ensure that future decisions conform with the Safeguards Agreement. The method is shown to yield results that are consistent with recent ITC safeguard decisions.

Type
Research Article
Information
World Trade Review , Volume 2 , Issue 3 , November 2003 , pp. 297 - 325
Copyright
© 2003 Douglas A. Irwin

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Footnotes

This paper was prepared for the Dartmouth-Tuck Forum on International Trade and Business conference on ‘Managing Global Trade: The WTO, Trade Remedies and Dispute Settlement’, Washington, D.C., May 16–17, 2003. I wish to thank Chad Bown, Robert Feinberg, the late Robert Hudec, Petros Mavroidis, and three anonymous referees for very helpful comments.