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DEE’s study analyzes the effects of antidumping in the Brazilian industry

Less competition

A study produced by the Department of Economic Studies, in partnership with UNDP, shows that antidumping measures are harmful to the industrial sector
by Assessoria de Comunicação Social published: Jul 18, 2017 03:42 PM last modified: Jul 18, 2017 03:42 PM

The Department of Economic Studies (DEE in its acronym in Portuguese) of the Administrative Council for Economic Defense – CADE released on 14 July a study analyzing the effects of antidumping in the Brazilian industry. The study concluded that the increase in antidumping measures in the Brazilian economy has resulted in a reduction of industry productivity and has increased the market power of beneficiary companies.

The study entitled “Antidumping and competition in Brazil – an empirical evaluation” was carried out in partnership with the United Nations Development Program – UNDP. DEE and UNDP analyzed the antidumping actions imposed to foreign companies, petitioned by Brazilian companies, between 2003 and 2013.

According to the study, “the imposition of antidumping measures by the Brazilian Government has resulted in the reduction of industrial productivity and increased the market power of the companies benefited by these actions. The benefits obtained did not lead to any positive outcome to the economic activity in general”.  

Through the analysis of data, such as the total factor productivity, mark-up, revenues and costs, among others, the study shows that the imposition of antidumping measures reduces the industrial competiveness and the level of competition, resulting in benefits to the sectors protected by these measures in comparison to other areas of industry. 

The study highlights that, despite the increased adoption of antidumping measures by developed and development countries, these actions “can compromise not only the improvement of economic efficiency in the sectors which are being protected, but also the general economic competitiveness, since several products affected by the measures are inputs to other industries”.

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