John Wainio

Trade Remedy Actions in NAFTA: Agriculture and Agri-Food Industries

The economic rationale for trade remedy law, while always weak, is undermined by the formation of free trade areas. However, due to political pressure, first CUSFTA and then NAFTA have continued the use of domestic antidumping and countervailing duty laws. With the lowering of border protection, it was feared that there would be an explosion of trade remedy law as NAFTA was implemented. This article examines data on the use of anti-dumping and countervailing duty investigations in agriculture, and analyses the incidence between NAFTA partners before and after the implementation of free trade, and compared to the incidence with other countries. Given the cost of current AD and CVD suits, options are explored for alternative methods to resolve AD and CVD suits. Evaluation of options hinges on goals held for dispute resolution within NAFTA. Given continued political opposition to eliminating AD and CVD processes, increasing the options for resolving these suits may reduce their overall costs.