Anti Dumping Actions By Comparing Them With Other Federal Governments Essay

Main protectionist policies include tariffs, quotas, embargos and voluntary export restraints, and Adam Smith’s idea of absolute advantage has been developed further to explain international trade. In recent years, protectionism has become closely related to globalization during which the influences of trades spread almost everywhere, so people insist upon the study of social deformities generated by improper policies on international trade and the task of pointing them out with a view to remedy. There are certainly both economic and political purposes of trade

WTO: Why It Was Opposed – A Rhetorical Analysis of Top Twelve Reasons to Oppose the World Trade Organization

The key important role of government intervene in international trade is interest to protect the domestic producers in their country. Political arguments concerned with protecting the interests of one group, which are producers often at the expense of another within a nation, which are consumers. First, government should protect jobs and

A common protectionist measure put in place in international trade is that of antidumping proceedings. These common rules lay out that charging an unfair price for goods, also known as dumping, is prohibited. These unfair prices are defined as prices that fall below production cost or below the price that a foreign firm charges for that identical good in its own country. Despite the regulations put in place here in the U.S. to prevent dumping, underpriced items are still very common. Further policies need to be enacted to prevent this. Currently, the United States Department of Justice has some cases where it defines normal profit rates as exceeding cost by over 50%. This rate is far higher than what exists in the majority of U.S. industries. To reduce the prevalence of dumping by foreign firms, the United States Department of Justice should reevaluate its markets with high profit rates and lower the percentage by which the profit rates must exceed production cost in order to be defined as a “normal” profit. Reducing these rates would not only reduce dumping but would also affect the two previously states problems of cheap labor and underpriced goods.

There are quite a few forms of tariffs that the government may apply based on the condition of the country’s economic welfare. The pros and cons of these forms of tariffs will be reviewed. Discussion on how these tariffs positively or negatively affects the economic stance of the country will be displayed. Tariffs such as the ad valorem, the taxing a percentage of the value of an item and the specific tariff or tax which is a set amount based on weight or sum of items. (McEachern, 2015)

Article II sets forth an obligation of all Members called Most Favored Nation treatment (MFN). The main purpose of MFN is to ensure the equal treatment among Members by creating an obligation to guarantee and treat all like services and service suppliers of the other members equally and without discrimination. However, what is considered a “like” service or service supplier remains undefined in Article II, and efforts to define the term under GATS is described by the WTO as “limited and inconclusive”. In fact, several disputes brought forward under the WTO’s dispute-resolution body have failed to adequately address this shortcoming. Nonetheless, Members are required to oblige this requirement regardless of its

Free trade has long be seen by economists as being essential in promoting effective use of natural resources, employment, reduction of poverty and diversity of products for consumers. But the concept of free trade has had many barriers to over come. Including government practices by developed countries, under public and corporate pressures, to protect domestic firms from cheap foreign products. But as history has shown us time and time again is that protectionist measures imposed by governments has almost always had negative effects on the local and world economies. These protectionist measures also hurt developing countries trying to inter into the international trade markets.

Trade is generally known as the buying and selling of goods from one person to another, “international trade would involve at minimum two countries and can go up to however many want to participate in the trade”1 and have something to offer that the there corresponding countries are willing to accept. Trade involves a lot of protection backed by the governments of the countries trading; hence, there are a number of common arguments in favor of protection. These may help certain groups within a country, or even may help a nation achieve some overall goal entirely. When it comes to trade there are numerous arguments put forward, some of which I will be discussing in this paper such as government

The General Agreement on Tariffs and Trade 1994 (GATT), Article XX(a) allows its Members to adopt trade-restrictive measures that are necessary to protect public morals provided that the measures would not constitute a means of “arbitrary or unjustifiable discrimination between countries” or “a disguised restriction on international trade.” However, GATT does not define ‘public morals’.

The World Trade Organization (WTO) is a global organization that helps countries and producers of goods deal fairly and smoothly with conducting their business across international borders. It mainly does this through WTO agreements, which are negotiated and signed by a large majority of the trading nations in the world. The purpose of the WTO is to ensure that global trade commences freely, smoothly and predictably while also aiming to create economic peace and stability in the world through a multilateral system. This is based and applied to member states, currently 162 countries, that have consented and ratified the rules of the WTO in their individual countries. Simply put, these documents act as contracts that provide the legal framework for conducting business among nations, integrating into a country 's domestic legal system, therefore, applying to local companies and nationals in the conduct of business internationally. For instance, if a company were to open an office or business in a foreign country, the rules of the WTO dictates how that can be done.1

The term paper is structured starting from conceptual framework, which focuses on defining the term of “fair trade”,

Ever since the first involvement of government in international trade, many people have posed their opinion about what the role of government should be in it. Different factors are involved when it comes to deciding what this should be. It impacts a lot of people, so in order to do that, trade policy must be properly defined, identify what the roles of government currently are, and their involvement in it, and then analyse what should be their role. Trade policy is how a country carries out trade with other countries (Commercial Policy, n.d). Even though a lot of people support government intervention in international trade, countries would benefit a lot more if the government removes protectionism and promotes free trade instead.

A country is said to be “dumping” a product if it exports its goods at a predatory price i.e. a value much lower than original production costs, somewhere below the price charged in the domestic market and is considered illegal. An anti-dumping duty is a protectionist tariff imposed by the domestic government on foreign imports that it believes are priced below the fair market value.

“One precedent creates another and they soon accumulate and constitute law. What yesterday was a fact, today is doctrine (Junius).” The World Trade Organization looks at precedent to determine the outcome of similar disputes. Based on precedent, the United States - COOL Requirements holding is proper under the similar Clove Cigarettes dispute. Part II of this essay offers background information about GATT, the WTO and the TBT agreement. Part III provides information and facts about the Clove Cigarettes dispute. Part IV provides information and facts about the COOL Requirements dispute. These facts are then analyzed in part V and the essay is concluded in part VI.

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.