The general theory of the natural course of world trade: Special circumstances to initiate trade remedy investigations

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Abstract

Via the Vienna Convention on the Law of Treaties, this article proposes a definition of the "special circumstances" that sanction authorities to self-initiate trade remedy proceedings. In effect, it is a global theory which seeks to solve authorities' inability to self-detect unfair trading practices – without a complaint of the domestic industry. This inability likely restrains trade remedies' potential as a finer, more fruitful alternative for the indiscriminate imposition of bulk-tariffs – visible in the Sino-American trade war. Arguably, the "special circumstances" occur when the pace of country-specific import significantly exceeds the pace of the worldwide import, through significant price undercutting which stems from transnational price discrimination rather than a cost-efficient industry. To ascertain whether or not an absence of price discrimination is due to a particular market situation, the general theory introduces a new criterion. This criterion provides the first definition of "sales in the ordinary course of trade", wholly derived from Article 2.2 of the WTO Anti-dumping Agreement.
Original languageEnglish
Pages (from-to)1-14
Number of pages14
JournalJournal of World Trade
Volume55
Issue number3
Publication statusAccepted/In press - Jun 2021

Keywords

  • trade remedies
  • initiation
  • dumping
  • special circumstances
  • particular market situation
  • price undercutting
  • ordinary course of trade

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