Trade Enforcement 101

Launching a
Complaint

Industry initiated
Government initiated
World Trade Organization
(WTO) dispute panel
Anti-dumping Duties (AD)

IF
Foreign exporters sell to U.S. at less than fair value

AND
Such sales cause or threaten material injury to the U.S. industry producing
the like product

THEN
U.S. will impose antidumping duties
Countervailing Duties (CVD)

IF
Foreign exports to U.S. are subsidized

AND
Such exports cause or threaten material injury to the U.S. industry
producing the like product

THEN
U.S. will impose countervailing duties
 International Trade Commission
(ITC) Analysis in Original
Investigations

Analysis of Material Analysis of Threat of

Injury: Material Injury:
Volume of subject imports New and unused capacity
Price effect of subject Potential for product-shifting
imports Inventories
Impact of subject imports Vulnerability
AD & CVD Orders

Responsibilities:
Commerce investigates dumping and subsidies
ITC investigates material injury
Outcomes:
Orders result in additional duties on imports
Equal to margin of dumping or subsidies granted
Paid by importer
Forces price increases or eliminates imports
Likely to remain in place at least 5 years
Prosecuting an AD/CVD Case
DOC
DOC
determinati
initiation of
Petition on of
investigatio
industry
n
support

DOC ITC
Suspension
preliminary preliminary
of
determinati determinati
liquidation
on on

DOC final ITC final

Imposition
determinati determinati
of relief
on on
AD Investigation Timeline
CVD Investigation Timeline
Appellate Process U.S. Courts

Appeals from the ITC or the DOC may be

taken to the U.S. Court of International
Trade (CIT)

Appeals from the CIT may be taken to the

U.S. Court of Appeals for the Federal
Circuit (CAFC)

Parties that lose at the CAFC may seek a

writ of certiorari to the U.S. Supreme Court
Appellate Process - International

Trade cases involving Mexico or Canada may be appealed

to a Bi-National Panel established pursuant to NAFTA

Trade Cases challenging U.S. laws or regulations, or

decisions of the ITC or DOC, may be filed at the WTO
A trade case can be brought at the WTO even if litigation
is also taking place in the U.S. courts or NAFTA
WTO cases are heard by a dispute settlement panel
Decisions of WTO dispute settlement panels may be
challenged at the WTO Appellate Body
Other Remedy Options

U.S. Law Options:

Safeguard (Sec. 201-204, 301, 406, 421)
Intellectual Property (Sec. 337)
USTR authority (Sec. 301-310)

International Options:
Government-to-Government (G2G)
World Trade Organization Dispute
Settlement Process
Government-to-Government
Dispute Settlement Timeline
Panel set up First panel
Consultations,
and panelists report to
mediation, etc.
appointed parties
60 days
45 days 6 months

Dispute
TOTAL = 12 Settlement Final panel
MONTHS Body adopts report to WTO
(without report (if no members
appeal) appeal) 3 weeks
60 days

Dispute TOTAL = 15
Appeals report Settlement MONTHS
60-90 days Body adopts
appeals report (with appeal)
Whats Happening Now?

White House created a National Trade Council

Administration has withdrawn U.S. from Trans-Pacific
Partnership (TPP) agreement
Administration released its trade policy to Congress
Administration exploring WTO dispute alternatives
Administration has not yet designated currency
manipulators, launched its own trade cases, announced
renegotiations of trade agreements, or new agreements
Trade with China
 Make Trade Work
Prioritize trade enforcement
Reduce global industrial
overcapacity
Maintain Chinas Non-Market
Economy (NME)
 Make Trade Work
Deter and penalize currency
manipulation
Prioritize job creation in
trade agreements
Address Chinese state-
owned investment
Trade Deal Renegotiations
NAFTA

Key Issues in Renegotiation:

Rules of Origin
Labor and Environmental Standards
Surges, Snapbacks, and Other Import Issues
Procurement
Dispute Resolution
North American "competitiveness"
Passing Free Trade Agreements
Passing Free Trade Agreements
Whos Who Guide
Trades Whos Who & What They
Can Do

President (NEC, NTC, NSC)

U.S. Trade Representative: Bob
Lighthizer (nominated)
International Trade Commission
Commerce Department: Wilbur Ross
(confirmed)
Other Agencies
World Trade Organization
Trades Whos Who & What They
Can Do
Congressional leaders:

Senate Finance Committee: Hatch (UT) &

Wyden (OR)

House Ways & Means Committee: Brady (TX) &

Neal (MA)

Important Voices: Sens Portman & Brown (OH)

Resources
Approaches to Trade

1.Philosophical
2.Policy
3.People
Resources
1.Philosophical / Economic
Economic Policy Institute, Cato Institute, Chamber of
Commerce, Peterson Institute, National Bureau of Economic
Research/David Autor, PIIE
2.Policy
Alliance for American Manufacturing, USW, AFL-CIO, National
Foreign Trade Council, U.S. Chamber of Commerce
3.People
Department of Labor Trade Adjustment Assistance
database, Public Citizen, WARN Act News, USW,
Chamber