DP3981 | Business Cycles, the Current Account and Administered Protection in Mexico

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Antidumping actions in the United States and EU are known to be linked to macroeconomic conditions. In part, this is because positive injury findings may be easier to make in a downturn. We explore the evidence for Mexico, one of the main ?new? antidumping-using countries. Injury determination is also critical in Mexico?s antidumping policy, as a majority of unsuccessful complaints have been rejected because of negative injury findings rather than negative findings of dumping. Working with data from 1987 through 2000, we provide evidence for a relationship between macro-economic factors and antidumping complaints, including current account and exchange rate movements, and both local and global general macroeconomic conditions.