Strategic Behavior and the United States Unfair Trade Statutes

Business & Finance, Economics
Cover of the book Strategic Behavior and the United States Unfair Trade Statutes by Jeffrey W. Steagall, Taylor and Francis
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Author: Jeffrey W. Steagall ISBN: 9781351583626
Publisher: Taylor and Francis Publication: October 10, 2017
Imprint: Routledge Language: English
Author: Jeffrey W. Steagall
ISBN: 9781351583626
Publisher: Taylor and Francis
Publication: October 10, 2017
Imprint: Routledge
Language: English

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.

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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.

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