Injury Investigations in “Material Retardation” Antidumping Cases

Narayanan, Prakash | January 1, 2004

Despite the criticisms of economists to antidumping measures, they continue to be the most often used trade remedy measure. A new trend that may be observed is the use of the “material retardation” standard of injury to demonstrate injury to domestic industry that is one of the requirements for imposing antidumping duty. It is essential to be wary of this trend as unlike the other two types of injury, the WTO lacks specific guidelines for the use of this standard. The general rules in the Antidumping Agreement are unsuitable for the situations where the material retardation standard is relevant, and the current bifurcated method of injury analysis adopted by most countries is inappropriate and inaccurate. A shift to a unitary approach focusing not on the overall health of the domestic industry, but rather what impact unfair imports have had on that health, along with certain other reforms, would better address the issue.