Exam 11: Regulating Import Competition and Unfair Trade

If country A gives favorable tax treatment to XYZ, Inc. a corporation in country A, because XYZ, Inc. exports a large number of widgets, this tax break is referred to as a(n):

The U.S. law that protects against "fairly traded" imported products is:

An upstream subsidy is granted by a government to a company that is based in another country, but has substantial business operations in the home country.

In determining if a sale is less than fair value, the International Trade Administration:

The antidumping duty imposed under U.S. law is based on the amount by which the foreign market value exceeds the cost of production by at least 10%.

The WTO frequently impose regulatory methods to control imports into their markets.

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario Tax credits extended by the government of India to Indian companies in order to assist in the reduction of greenhouse gases emitted during the manufacturing process.

Dumping does not require that the product be sold in the home country for less than the cost to produce it.

If the International Trade Commission reaches an affirmative decision in an escape clause action, workers, firms, and communities may be eligible for federal adjustment assistance.

If domestic workers are damaged by foreign competition, they may be entitled to two (2) years of state unemployment benefits and federal trade adjustment assistance.

The GATT escape clause allows member nations to take drastic permanent measures to protect a domestic industry and thereby preserve jobs.