None of these papers address the effect of NAFTA on U

The Effects of CUSFTA and NAFTA on Antidumping and Countervailing Duty Activity Bruce A. Blonigen Department of Economics University of Oregon and NBER Eugene, OR 97403-1285 Ph: 541-346-4680 Email: bruceb@oregon.uoregon.edu Fax: 541-346-1243 Draft prepared for World Bank Project This version: May 2002 Abstract: This paper examines the effect of the Canadian-U.S. Free Trade Agreement (CUSFTA) and the North American Free Trade Agreement (NAFTA) on U.S. antidumping and countervailing duty (AD/CVD) case frequency and determinations against Canada and Mexico, respectively. These free trade agreements (FTAs) may have affected U.S. AD/CVD activity both through increased trade volumes and through the establishment of new Chapter 19 dispute settlement procedures to review national AD/CVD decisions when requested. Using a panel database of U.S. AD/CVD activity from 1980 through 2000, the paper generally finds no evidence that either increased import volumes or Chapter 19 dispute settlement activity affected the frequency of U.S. AD/CVD cases or affirmative determinations against Canada and Mexico. An exception is evidence that cumulative remands by Chapter 19 dispute panels to review U.S. decisions against Canada have led to fewer new affirmative AD/CVD decisions against Canada. These results have implications for future negotiations of PTAs and WTO rounds. 1 1. Introduction With the success of GATT/WTO ...