Sustainability of Trade Liberalization and Antidumping: Evidence from Mexico's Trade Liberalization toward China

A Negative Binomial Regression Model is used to investigate the sustainability of China-Mexico trade liberalization by testing the tariff lines underpinning Mexico's successful antidumping (AD) measures against Chinese imports from 1991 to 2011. Evidence shows import tariff cutting and consumption growth have a positive impact on consumer goods but a negative impact on intermediaries. This result implies that while the Mexican government has expended considerable energy on the trade liberalization of intermediate and capital goods, the domestic consumer goods market has been protected from Chinese imports. The empirical results indicate that Mexico's AD use for consumer goods helps to sustain trade liberalization of intermediate and capital goods under the domestic political pressures for trade opening.