NTBs Flashcards
What is dumping?
When export price < normal value
What if the effect of dumped import on the consumers of the importing country?
Beneficial
What if the effect of dumped import on the producers of the importing country?
Harmful
What three basic conditions should be satisfied to applied antidumping duties?
GATT Article VI
i) Existence of dumping margin
ii) material injury to the domestic market
iii) causality
What is predatory dumping?
Dumping resulting in monopoly, then monopoly profits
What is price discrimination?
Assuming two seperate market, profit maximizing behavior leading to dumping
What are contervailing duties?
Countervailing duties can be imposed when the government of the exporting country provide subsidies to its producers
What if the effect of subsidized import on the consumers of the importing country?
Beneficial
What if the effect of subsidized import on the producers of the importing country?
Harmful
What three basic conditions should be satisfied to applied countervailing duties?
GATT Article VI
i) Existence of subsidy
ii) Material injury to the domestic industry
iii) causality
What is the traffic light approach of subsidies in the Agreement of Subsidies and Countervailing Duties of the Uruguay Round?
Categories of subsidies based on the traffic light approach:
i) Red light = prohibitied subdidies
=> export subsidies and import substituting subsidies
ii) Yellow light = actionable subsidies
=> Subsidies provided to selected industries or firms
iii) Green light = non-actionable subsidies
=> non-specific subsidies provided regardless of indutries and firms
What are the two export incentives in the WTO?
- Duty drawback
- Export insurance
What are the three basic conditions to applied safeguard measures?
i) Import surge
ii) serious injuty
iii) causality
What is the compensation provision?
If the safeguard of the importing country reduces exports of the exporting country, then the importing country should compensate for the loss of exports by reducing tariff rates of the other goods
