*i'~l.~ril xi A /z2. and Ii6rnr.1nn (l&.S.-Cnain Te oio Pur &


domestic like product, or those producers
whose colleitc output of a domestic like
product constitute a major prnOlkhriol,'n Of the
total domestic production lof the product."' It
further dliinIsc donmesiLl like product as "a
product which is likr. or in the absence of like,
most .,ianl.ar iln cLh.HiLacieri.li:c and uses Uwlh
the article 'uihbecl to an inriieig.tii.ri . ."
11i." I C'. in .ippl ilig the statutory ,I.iiit::in I if
"like" or "'nlo.I similar in characteristics and
uses." does so on a case-by-case basis ( TCr
.0HII. p. 3). -\ltlh,uh the ITC does not rely
ct'L-luil el) on any one factor in arriving at its
decision, invariably wr he such determinations
are made, the preponderance of the evidence
is based on six traditional qualitative factors:
phiiL.il characteristics and uses; interchange-
hbilitl. common produclhin l aciltiuc. prlKess-
es. and 'emrplou.cc. producer and customer
perceptions: and channels of dilinrunioun (ITC
2001 p. 5 -9). In the instances where prices
have been used, they are iii'n prci-enie only
as descriptive statistics, such as mean and
price differeniil ... which ca ofn oft be mis-
lc.iing. Seldom are such determinations based
on econometric modeling, which has the add-
ed advantage of being able to control for "oth-
er factors" and provides a transparent and ob-
jecive approach to such determination,
 Follhowi In- idlnnililcati1iOi of the like product
and domestic industry. the ITC' sets out to de-
termine injlr% (point above). As allltiedl to
earlier, the standard in an injury determination
depends on the I p"e of case involved. An af-
lirmi.m e determination by the ITC in an an-
tidtJnpinp case only requires a determination
that an inrll-lr in the United States is mate-
rially injured by reason of imports unldel in-
vestigation. In other IwArd. dumping only
needs to be a cause Il material in.mi L and the
FTC is ,tricll, Iorbiddl n from weighing ihc
effects of causes, The determination of in iur,
must consider the uilume of subject imports.
their effect on prices for the domestic like
product, and their effect on domestic produc-


 1 19 US.CC. I f."1 -3 11%
 '' 7 1) YuS.C. I l,'1'6-:, Ill
 19 U.S.C, li',T-',lin
 "19 U.S.C. r.77.1hi,
 S. RL'p No. 2-4,. 96th Cong. Ist Sess. 74 I-'t


ers of the like product, but only in the context
ift the domestic operations of the producers.
 Several tests can be employed to determine
whether an industry is nm.rerti.llI injured One
is a measure ni the effect of imports on the
relative health of the ililii-nll vhiL'h is ac-
ciipli.he.d by .irIsNiderlling the levels and
trends "I factors that can characterize industry
condition Thc-C include: (1) the price 4it the
dinjlll-cl import relative to domestic product
price(price unlderutiil. (2) increases in vol-
ume of the dumuipe import. (3) price of the
U.S. like product ipri.e suppression or de-
p1rv .Llni 141 domestic output, (5) domestic
sales., ih domestic inventories. (7) domestic
market h.ire. (8) trii~. 4') total volume ni
dumped iiihn rt-. (10) .ipl iit\ utilize tion, (11)
cash 1l4W, (12) pn0lin1 (13) pido ilit, (1-4)
return n inveslnents. i ivese1s investmentsI I Iu i
ability to raise capital. (17) employment, and
( IM Iw.JJ,."1
 These factors are weighed by he ITC1 in
reaching their conclusion on injury. One meth-
od used by the ITC to evaluate injury with
these tjL ll. is the Commercial I'llli', Anal-
ysis .5iiylmn (.CO)N1P'. Fr.nimi% and Hjllj.
'.OMIPA. is a set of spreadsheet-based partial
,:iriiri trrii iin models that .ii.ilx te trade-related
.lin or injury to rpe.llilc domestic industries
and the dIper.all ecI-,Lini)s The uildLrl\ ing
model structure iif Ct >MPA.\ is an *\rniiniigton
model 0,lblini il g ncl.'' ,r l lu I IIIn iiIltiiiii about
pii..luli siTmilrity. illdduiir demand, l ll ph
condition, and market shares. The todel dis-
iiiruishe, commodities b% their (liiun yv of or-
igin and assumes a single constant elasticity
of substitution and hLrlnotheiliJilN of i prier-
ence. The COM.PAS model is sensitive to the
value ,f' the elasticity Iof substitution for the
products, and as a rceull. the effects on the
industry from estimated dumping margins can
be understated (Alston ei al.. The Staff Anal-
ysis pertrmicd by the ITC uses the COMPAS
model to estimate injury, not as a definitive
analysis, but as ,uidance in making a final de-
icr niintion


 "" 19 U.S.C. ", ,'i7 i ii ni I


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