Trade Laws



Trade Laws

In the above scenario, the International Trade Behemoth Corporation (ITBC) is suffering on account of the unfair pricing by a foreign country which is also supported by their government or their binding agreement with the EU that is providing them with subsidy. This is causing a distortion of the free flow of goods. It is adversely affecting the business of the ITBC in the global market place as well as locally. In this regard the first step would be to approach the import administration of the International Trade Administration of the Department of Commerce. The International Trade Administration of the Department of Commerce is assigned with enforcing laws and agreements for the protection of the American businesses on account of an unfair competition that they may have to face within the American territory. This unfair competition is the direct result of unfair pricing by foreign companies such as those of France and Germany that are providing unfair subsidies to their respective businesses.

This is a clear case of dumping in which a foreign producer in the American territory is selling a product that is below the price of the same product being sold in the country of origin or the home market and the price of that product is lower than what is the cost of production. The problem for the ITBC stems from the dumping margin which is the difference in the cost or price in the foreign market and the price with which the product is being sold in the American market. Now since this conduct of these foreign countries is falling cording to the American law, as these foreign producers is selling their imports at prices which are lower than those of the American product, therefore, this is a clear case of dumping (http://ia.ita.doc.gov).

The assistance being provided by the European Union to the French and German businesses falls under the category of countervailable subsidy. This is because subsidy is being provided to these businesses by the European Union in order that these businesses benefit from the manufacturing, production and exporting of goods (Fischel, 1995).

Now since ITBC is suffering on account of both dumping and subsidization of a foreign product, the right step for ITBC would be to file a petition. This petition needs to be foiled with both the United States International Trade Commission and the Import Administration. Import administration would carry out the necessary investigation to find out whether dumping has occurred. After confirmation that dumping has occurred, the Import administration will calculate the amount of those subsidies (http://ia.ita.doc.gov).

The International Trade Commission will determine whether ITBC has suffered injury on this account. It will instruct the U.S. Customs and Border Protection to carry out an assessment of the duties against imports of the products imported by these countries into America (http://www.usitc.gov).

If it is determined that dumping has occurred leading to injury to ITBC by both the International Trade Commission and the Import Administration, then the U.S. Customs and Border Protection will carry out an ...