The Effectiveness of Antidumping Measures under the Byrd Amendment: Some Empirical Evidence for Catfish includes Imperfect Competition in Agricultural International Trade, Vietnamese catfish industry globalizes, Antidumping measurement – definition and investigation process. | The Effectiveness of Antidumping Measures under the Byrd Amendment: Some Empirical Evidence for Catfish Nguyen Minh Duc and Henry Kinnucan Auburn University, AL, USA NMDUC2009 INTRODUCTION • Globalization benefits all, all countries, all people and all trade partners (Thompson) • Through various GATT/WTO rounds, tariff barriers have decreased worldwide, but anti-dumping measurement has surged to play a crucial role as the most important non-tariff barrier (Zanardi, 2004). • Antidumping duty (AD) is recently used more frequently, by more countries, and against more products (Prusa, 2005) • As processed and differentiated agricultural products are increasingly traded cross national borders (Reimer and Stiegert, 2006) more of them are facing antidumping measurements conducted by importing countries • Recently, aquatic products trade has the same problem NMDUC2009 1 THIS STUDY • As US food processing and distribution is often marked by product differentiation and imperfect competition (Cornor et al., 1985 and Sexton 2000), the theoretical framework assumes Bertrand competition and differentiated goods. • Under “labeling” law 2001 and biological differentiation of the catfish products, “catfish war” is useful for a study case on effect of the antidumping tariff for differentiated products. • In the empirical regression, price-reaction functions are derived and estimated jointly with a demand equation using monthly data for the period January 1999-August 2006 to test whether US price and quantity increased during the tariff period, as predicted by theory. NMDUC2009 CASE STUDY – CATFISH WAR v Catfish production is one of the biggest aquaculture industries in the US and frozen catfish fillets is the most important product of the US catfish processing industry (Harvey, 2005). v The anti-dumping duties are large (ranging from to ) affected all of the fisheries processing companies in Vietnam that export to the US and were implemented in .
