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Antidumping

ANTIDUMPING 4

1.What is an antidumping action? What is it based on? What are itsconsequences?

Ananti-dumping action refers to legal practices that governments use tocontrol foreign trade, whereby the importer brings in products thatare priced at a lower cost than they are sold at their home country.The action taken is based on the Agreementon Implementation of Article VI of the GATT 1994.Theresults of anti-dumping often include to imposition of an antidumpingduty. The duty is the tariff that is placed on selective productsthat importers are able to bring into another country at a lowerprice than its source. In the US, the government does give relief tolocal manufacturers affected by local manufacturers.

2.Evaluate Mr. Eu`s actions from early 1992 to March 1993.

Fromearly 1992 to March 1993, Mr. Eu focused on developing strategiesthat could hinder the US establishing antidumping policies. Inaddition, Mr. Eu was also looking at various measures that couldensure that even if the US filed for an antidumping campaign, itseffect could have no significant effect. He planned to achieve thisgoal through diversifying the services KB offered. In addition, Mr.EU focused on fostering good relationship with the clients such thateven if the prices increased after the implementation of theantidumping tariff, the customers would not shift their loyalty totheir competitors. For example, Mr. EU ensured to keep steady andtimely supply of services to all clients. On the same note, heascertained that the quality of the steel was high enough to competewith the industry’s rivals from other countries such as Japan andKorea that were supplying good quality steel. Lastly, Eu focused onpreparing for the antidumping action through ensuring the clients geton time technical support, as well as matching consultancy services.

3.What initiatives should Mr. Eu have taken when he first received aletter from KTSB`s law firm in Washington?

AfterMR. EU received the letter from KTSB`s law firm in Washington, heshould have disputed the imposition of the antidumping action. Heshould have informed the Dispute Settlement Body of the WTO that hecould justify that steel imports from Malaysia were not eligible forthe antidumping regulations. In order to accomplish this ambition, heneeded to prepare enough documents that could help him to prove thathe had effectively complied with all the established regulations. Aslong as Eu could prove to a panel created by the DSU that, he hadbeen complying with the anti-dumping measures stated in theagreement, the panel can defer implementation of the anti-dumpingpolicy pending evaluation of facts. Although the panel cannot haltthe implementation of the anti-dumping measures, it can prevent thenational authorities from making decisions that are completely basedon their views.

4.What should Mr. Eu do now to respond to the dumping charges?

Presently,Mr. Eu he should strive to ensure that the anti-dumping legislationconforms to the Anti-Dumping Agreement. In addition, he should informthe Committee on Anti-Dumping Practices of the legislation. TheCommittee then reviews the questions raised by members and evaluationof a given member’s regularity in execution of national legislationof the obligations of the accord.

Moreover,Mr. Eu should update the Committee two times in a year regardinganti-dumping measures, actions, and investigations carried out. TheCommittee has a unique format that it uses during the evaluation ofthe notifications.

Lastly,he should immediately notify the committee of the preface andeventual anti-dumping policies adopted. The Committee has setguidelines regarding the least information that Mr. Eu should reveal.

5.What other actions should Mr. Eu take?

Mr.Eu can also challenge the current antidumping regulations with theCommittee on Anti-Dumping Practices. This could help him gain astronger ground for opposing the implementation of the antidumpingmeasures. In addition, he can diversify the products he distributesin order to reduce the effect of the antidumping policies that wouldbe established.