Countries "F", "G", "H" and "I" are all members of the World Trade Organization.

-Country "F" and "G" have a trade agreement: "F" lowered its dairy tariff to 8% and "G" lowered its lumber tariff to 7%

-Country "H" and "I" have a trade agreement: "H" lowered its dairy tariff to 5% and "I" lowered its lumber tariff to 9%

a. A year into the agreement with Country "I", the dairy industry in Country "H" is suffering. The dairy farmers complain of too much competition in the domestic market and decreased sales. An investigation has determined that a serious injury to the industry has not occurred. Name and explain:

i . 2 options available to Country "H" in response to this situation; and

ii. the constraint (trade law issue) they need to consider

b. Country "I" wants to export dairy to Country "F". What tariff rate should their dairy farmers budget to pay and why?

c. Country "I" farmers are not satisfied with the current tariff rate for dairy exports to Country "F". Name and explain two of their options.

d. Countries "G" and "I" realize that they have a lot in common. They decide to work together, rather than compete, in the lumber industry. Identify and explain how they would formalize this commitment.