By Brink Lindsey
Shortly, the U.S. stands on my own in opposing significant reform-an untenable place. during this publication, the authors clarify how those insidious principles have persisted, and why and the way to advertise a winning antidumping reform approach.
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Additional resources for Antidumping Exposed: The Devilish Details of Unfair Trade Law
S. sales to only above-cost sales always exaggerates dumping margins, since all the lowest-price sales are excluded from the comparison. 14 To illustrate the kinds of distortions that can be created by mixing methodologies, we gained access to the full confidential record of one of the mixed determinations in the sample. The investigation in question was of static random access memory (SRAM) semiconductors from Taiwan, and the specific company examined was Integrated Silicon Solution, Inc. 3). In sum, a review of the actual case record confirms that the antidumping law as currently written and implemented is miserably ineffective at identifying price discrimination caused by sanctuary markets.
A consumer goods firm may enjoy brand recognition in its home market that allows it to command a premium price, while abroad its brand name may be less valuable. Similarly, a producer goods firm may have built a reputation at home as a reliable supplier of high-quality products, while remaining a relative unknown in foreign markets. Or it may have carefully cultivated long-term business relationships with its domestic customers while serving export markets on more of a spot-market basis. In all of those situations, the firm is exposed to greater pricing pressure abroad than at home and consequently will be forced to accept a lower price on its export sales.
A sanctuary market is one in which a foreign company is making profits due to government intervention; here, though, the company is apparently losing money at home. The supposed source of unfair advantage—namely, the opportunity to crosssubsidize low-price export sales—is missing. S. sales are compared to abovecost sales only. S. side. And here again, as in constructed-value cases, the evidence affirmatively rebuts claims of a sanctuary market. Below-cost sales are excluded only when they constitute at least 20 percent of sales; such widespread losses are inconsistent with the supposedly supernormal profits of a sanctuary market.