The great recession and the determinants of tariff and antidumping restrictions in Argentina, Brazil and Mexico: a retrospective study

Abstract

During the Great Recession (GR) several Latin American economies were active users of trade policies measures. However, their protectionist response is frequently seen as an instrument to attain other goals rather than those related to overcome the GR. This paper explores what is behind countries’ conduct and summarizes the macro and microeconomic determinants of tariff and antidumping (AD) barriers in Argentina, Brazil and Mexico using pre- and post-2008 GR trade and protection data. As to tariff barriers, institutional agreements appear to have kept applied tariff in control after the crisis, while the positive impact of intra-industry trade reveals the governmental dependence on tariff revenue in both Sud-American countries. As to AD determinants, the evidence indicates that Argentina have further increased AD investigations after the crisis as a complement to tariff. Finally, the GR has not reinforced the relationship between movements in the exchange rate and the start of an AD procedure.