Nontariff barries

1168 WordsApr 14, 20145 Pages
Case Study #1: Non-tariff Barriers to International Trade 1. In the Xia case, if the WTO were to rule in favor of Brazil, which of the WTO trade agreements would contain the justification and why? Answer: Brazil banned imports of Xia goods from China because there was allegations and unconfirmed speculation pertaining to China’s use of hazardous materials (for example, lead paint and potentially carcinogenic plastic and rubbers) to manufacture toys cheaply, which sparked consumer panic around the globe. The imports of Xia goods were banned until the test was performed to guarantee that these goods do not possess any health risk. The Chinese government completely refuted this claim and fearing that other country might follow the…show more content…
Answer: The Chinese government would reduce or eliminate the quotas and other measures which until now have protected domestic production of soybeans from cheaper imports. China’s consumption of soybeans ballooned by more than 160% between 2000 and 2011 when import barriers were removed, but the area planted with soybeans declined by 20% during those same years. Chinese farmers were simply unable to compete with imported soybeans that were RMB 300 to 600 (US$45-90) cheaper per ton than domestic beans. Imported soybeans now account for three-quarters of the soybeans processed into cooking oil and feed in China, the products of soybean crushing. If China is able to prove that domestic soybean producers are not able to survive because of low cost imports from Brazil, the WTO ruling would be in favor of China and such measures would be upheld. However, if such measures were used as retaliation to Brazilian ban on Chinese toys, the WTO ruling would be in favor of Brazil and China would not be able to restrict import of Soybean from Brazil. REFERENCES Raghavan, Chakravarthi (2000). The World Trade Organization and its Dispute Settlement System. Retrieved from: http://www.twnside.org.sg/title/tilting.htm Kassai Lucia, Colitt Raymond. (2013). Brazil Soy Boom Bottlenecked as China Left Waiting: Commodities. Retrieved from http://www.bloomberg.com/

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