revised version forthcoming in The World Economy

Canada's Antidumping and Safeguard Policies:

Overt and Subtle Forms of Discrimination

Chad P. Bown

Brandeis University &

The Brookings Institution

 

This Draft: February 2007

 

(Original draft: April 2005)

 

Abstract

 

Like many countries in the international trading system, Canada repeatedly faces political pressure from industries seeking protection from import competition. I examine Canadian policymakers' response to this pressure within the economic environment created by its participation in discriminatory trade agreements such as the North American Free Trade Agreement (NAFTA). In particular, I exploit new sources of data on Canada's use of potentially WTO-consistent import-restricting policies such as antidumping, global safeguards, and a China-specific safeguard. I illustrate subtle ways in which Canadian policymakers may be structuring the application of such policies so as to reinforce the discrimination inherent in Canada's external trade policy because of the preferences granted to the United States and Mexico through NAFTA.