Intervention analysis of the antidumping investigation on wooden bedroom furniture imports from China

Abstract

In recent years, the annual imports of wooden bedroom furniture by the United States have been over five billion dollars, with more than two billion dollars of that coming from China. This trend led to an antidumping action against China in October 2003. Since January 2005, antidumping duties of 0.83% to 198.08% have been imposed on individual Chinese firms. To assess the impact of this antidumping action, intervention analysis was employed to examine the import values of four furniture commodities and the prices of two of them over 1997–2008. China and six other major competing countries were included in the analysis. With regard to import values from China, significant trade investigation effects were identified: the petition announcement generated a positive impact in March 2004; the preliminary less-than-fair-value (LTFV) determination had a negative impact from July to December 2004. However, the final implementation did not show any expected trade duty effect. The aggregate impact of the antidumping action on import values from China over 2003–2008 was approximately equivalent to a 1-month import reduction. The impact on the unit prices for China was insignificant. For the six competing countries, intervention analyses revealed that the antidumping action generated a positive trade diversion effect, with the magnitude smaller than the trade depression effect on China.

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