Material Retardation Standard in the U.S. Antidumping Law

By Seo, Dong Woo | Law and Policy in International Business, Spring 1993 | Go to article overview

Material Retardation Standard in the U.S. Antidumping Law


Seo, Dong Woo, Law and Policy in International Business


TABLE OF CONTENTS I. Introduction

837

II. Legislative History and Underlying Policy of the

    Material Retardation Standard                              842
    A. The Antidumping Act of 1916                             842
    B. The Antidumping Act of 1921                             845
    C. The Trade Agreement Act of 1979                         848
       1. Prevention versus Retardation                        849
       2. The Issue of Materiality                             851
    D. Import-Relief Statutes Other Than Antidumping Law       855
       1. Countervailing Duty Law                              855
       2. Escape Clause                                        856
       3. Market Disruption Clause                             858
       4. Section 301                                          859
       5. Section 337                                          860

III. Authoritative Interpretation of the Material

    Retardation Standard                                       862
    A. Overview of Development of Cases                        862
    B. Exclusiveness of Standard                               865
    C. Nascent Industry                                        866
       1. Development of the Theory of Nascent Industry        866

2. Industry That Has Not Begun Production: "Substantial

          Commitment Test                                      867
          a. Synthetic L-Methinone from Japan                  868
          b. Motorcycle Batteries from Taiwan                  869
          c. Salmon Gill Fish Netting of Manmade Fibers
             from Japan                                        869
          d. Certain Commuter Airplanes from France
             and Italy                                         870
          e. Thin Sheet Glass from Switzerland,
             Belgium, and the Federal Republic of Germany      870
          f. Liquid Crystal Display Television Receivers
             from Japan                                        871

3. Industry That Has Begun Production But is Not

          Established                                          872
    D. Establishment                                           873
       1. Stabilization of Operation                           873
       2. Analysis of Precedents                               874
          a. When the Industry Began Production                874
          b. The Nature of the Production (Whether
             Steady Increase or Start-and-Stop)                875
          c. The Size of the Domestic Production Relative
             to the Size of the Domestic Market                876
          d. Whether Production has Reached a Break-Even
             Point                                             877
          e. Whether the Activities are Truly a New Industry
             or Merely a New Product Line of an
             Established Firm                                  877
          f. Other Factors                                     878

3. Evaluation of Establishment of an Industry as a

          Whole                                                879
    E. Material Retardation                                    880
       1. ITC's Approach                                       880
       2. Methodologies of Investigation                       881
       3. A Few Comments on the ITC's Practice                 883
    F. Viability                                               884
       1. Concept                                              884
       2. Threat of Future Retardation Problem                 885
    G. Causation                                               887
    H. Preliminary Determination                               890

IV. Other Issues Related to the Material Retardation

    Standard                                                   891
    A. … 

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