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Total strangers or soul mates? - antidumping and competition policies in Latin America and the Caribbean, Volume 1
Author:Guash, J. Luis; Rajapatirana, Sarath; Country:Brazil; Mexico; Colombia; Venezuela, Republica Bolivariana de; Uruguay; Peru; Bolivia; Guatemala; Paraguay; Costa Rica; Jamaica; Honduras; El Salvador; Chile; Argentina;
Date Stored:2001/05/14Document Date:1998/08/31
Document Type:Policy Research Working PaperSubTopics:Environmental Economics & Policies; Economic Theory & Research; Markets and Market Access; Free Trade; Labor Policies; Trade and Regional Integration; Access to Markets; Decentralization
Language:EnglishMajor Sector:(Historic)Economic Policy
Region:Latin America & CaribbeanReport Number:WPS1958
Sub Sectors:TradeCollection Title:Policy, Research working paper ; no. WPS 1958
Volume No:1  

Summary: As a result of trade reforms in the 1980s and 1990s Latin American and Caribbean countries became more open than at any time since World War II. However, these countries have recently begun to use antidumping measures as the new protection weapon of choice, as other barriers to trade have been reduced. In fact, the fastest growing antidumping actions are within regional integration arrangements, where they are being applied by member countries against each other. The authors argue that antidumping is anticompetitive and that its usual justification as a counter to predatory behavior is not relevant in the region. It is imperative, they say, that antidumping be contained if not altogether eliminated. While they find that safeguards are less anticompetitive than antidumping, they believe that all exceptional protection measures, such as antidumping, countervailing, and safeguards, should be considered together with competition policies. In other words, they should become soul mates rather than remain total strangers. The authors do not find that fine-tuning antidumping policy is a good option. Rather, they believe that both trade and competition policymaking ought to be brought under a single entity, as in Peru. This would lead to a more competitive solution.

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