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Australia and New Zealand are WTO members. The government of Australia wants to support its dairy farming industry, so it provides free electricity to its

Australia and New Zealand are WTO members. The government of Australia wants to support its dairy farming industry, so it provides free electricity to its dairy farmers. The dairy farmers in New Zealand are upset, since dairy from Australia sells in New Zealand at a lower price than New Zealand dairy and their profits are decreasing. What can the government of New Zealand do to help their dairy farmers? Impose a countervailing duty on dairy imported from Australia. Nothing. Impose an anti-dumping duty on soy imported from New Zealand. Ask the WTO to punish Australia

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