Lemieux on Antidumping and Countervailing Duties
By David Henderson
On April 27, 2017, Boeing petitioned the U.S. Department of Commerce to impose antidumping and countervailing duties for a total of “at least” 159.91% on Bombardier’s C Series commercial jets. Antidumping duties are supposed to compensate for the sale of an imported good at a price lower than its normal price or “normal value.” Countervailing duties are meant to compensate for subsidies from the government of a foreign exporter. On the first ground, Boeing claims that Bombardier is charging Delta Air Lines a price 41% less than the production cost; and, on the second ground, that Bombardier has received $2.5 billion in subsidies from the provincial government of Québec and a promise of a few hundred million dollars more from Canada’s federal government.
This is from Pierre Lemieux, “Boeing vs. Bombardier,” Econlib Feature Article for September.
One of the things I like about the piece is that in a few paragraphs, Pierre lays out the basic facts about antidumping duties and countervailing duties. Also, he gives the reader a feel for the petitioners’ likelihood of success. Hint: it’s very high. The whole piece is worth reading.
Pierre draws on the work of Dartmouth international trade economist Douglas A. Irwin. In his understanding and perceptive on trade, I would put Doug in the top 10 trade economists in the United States.