Berkeley Program in Law and Economics

This paper examines what are the possible interactions between antidumping and competition policies within Mercosur given the main objectives and challenges of the regional agreement. Taking into account the respective advantages and drawbacks of the analysed models it proposes a method for the progressive elimination of antidumping duties within Mercosur through the gradual insertion of competition policy principles in national antidumping proceedings. The topic is particularly important since the application of antidumping duties in a customs union is incompatible with the main objectives of this type of regional agreement, with provisions set forth in the World Trade Organisation and because they essentially represent a protectionist trade practice with unsound economic justification. Furthermore, the use of these trade measures represents a recurrent source of tension between Brazil and Argentina, given its widespread use by the latter country against the former.