Trade Deflection arising from U.S. Antidumping Duties on Imported Shrimp
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We empirically test whether the investigation and impositions of U.S. antidumping duties in 2004 on imported shrimp distorts a named country's exports to third markets. We constructs a panel of bilateral, disaggregated product-level data for annual trade flows of subjected shrimp between the six named countries (Brazil, China, Ecuador, India, Thailand, and Vietnam) and four major importers (EU, Indonesia, Japan, and Malaysia) between 1999 and 2010. Our results show that named countries’ trade flows were reoriented to other destination markets when U.S. anti-dumping duties were levied against their shrimp products.