Antidumping policy in Mexico fuels collusion and harms local industries.
The article explores the impact of anti-dumping policies in Mexico, suggesting that these measures may not only be driven by protectionism or retaliation but also by collusion and trade deterrence. The researchers developed a model to show how anti-dumping policies can lead to collusive agreements between companies. Through econometric analysis, they found that anti-dumping measures in Mexico can restrict trade, causing trade destruction and diversion. The study highlights the need for competition policy reform to address the discriminatory use of anti-dumping measures while considering the advantages some sectors may have that could harm local industries.