Australia — Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations

22 Pages Posted: 7 Dec 2020

See all articles by Antonia Eliason

Antonia Eliason

University of Mississippi School of Law

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Date Written: December 2020

Abstract

This paper analyzes the Australia – Anti-Dumping Measures on A4 Copy Paper panel report, the second recent WTO dispute to involve a challenge to Indonesia’s paper industry. The Indonesian paper industry benefits from reduced-cost inputs because of the Indonesian government’s influence and subsidies over the timber and pulp market. The report offers the first interpretation of “particular market situation” under Article 2.2 of the WTO’s Anti-Dumping Agreement. At the same time, it raises questions regarding the appropriateness of using anti-dumping measures to address what are fundamentally subsidy issues. While the panel ultimately found that Australia’s measure was inconsistent with Article 2.2, the paper shows that the panel's interpretation of “particular market situation” increases the relative attractiveness of using anti-dumping duties instead of countervailing measures. Two key points on the welfare implications of the decision can be made. The first relates to the motivations of the Australian paper industry and the imperfectly competitive market in which Australian Paper operates. The second is the importance of challenging subsidies rather than imposing anti-dumping duties where the subsidies in question have negative environmental effects.

Keywords: Anti-dumping; Subsidies; WTO; Particular market situation

JEL Classification: F13

Suggested Citation

Eliason, Antonia and Fiorini, Matteo, Australia — Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations (December 2020). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2020/87, Available at SSRN: https://ssrn.com/abstract=3741210 or http://dx.doi.org/10.2139/ssrn.3741210

Antonia Eliason (Contact Author)

University of Mississippi School of Law ( email )

Lamar Law Center
P.O. Box 1848
University, MS 38677
United States

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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