Anti-dumping measures and trade diversion A case study of the 2006 - 2011 tariffs on footwear from PRC and Vietnam

Abstract: This thesis investigates trade-restricting effects from the anti-dumping measures imposed 2006 by EU, on footwear with uppers of leather originating in PRC and Vietnam. Moreover, the possibilities of trade diversion are explored by looking at imports of the same products from India and Indonesia, during the same time period. A difference-in-difference test has been run on each country respectively to estimate the effects of the tariffs. The results are in line with earlier studies and find that the anti-dumping measures have indeed decreased imports from PRC and Vietnam. In addition, we find that there has been an increase of imports into the EU of the same products originating in India and Indonesia. Although earlier literature is still at odds on this matter, our finding follow recent studies suggesting that an anti-dumping measure on one country might lead to trade diversion to a third country, however this direct link remain untested.