Is Antidumping legislation a threat to competition? a case study of US chemical industry

The U.S. antidumping legislation provides protection to domestic industries that face dumped imports. Restricting imports by imposing antidumping duties protects domestic firms from predatory pricing by foreign firms. At the same time it reduces competition in the domestic market. In cases where the industry consists only of one or two firms, import restriction can drastically reduce competition faced by domestic firms. This paper looks at the cases filed by the chemical industry to illustrate this possibility. The concentration of industries asking for protection and the impact of import restriction on domestic competition is studied.