Question
Global Trade Law Case Study 1 The small island state of Boga which comprises about 2 million inhabitants has recently been recoveringfrom a civil war.
Global Trade Law Case Study 1 The small island state of Boga which comprises about 2 million inhabitants has recently been recoveringfrom a civil war. Boga suffered serious economic decline throughout the period of the civil war. Thecountry's companies and other businesses also closed down as the civil war disrupted manufacturing. Its infrastructure was also totally damaged. Following the war, the incumbent government of Boga isstriving hard to rebuild the country back up and give hope to its citizens. The government is doing thiswith the assistance of external donors, including the government of Canada and Canadian non-governmental institutions. To stimulate the economy and create a fresh start, the government of Boga is providing variousincentives to businesses in the country to enable them hire staff, train them and produce goods for both the domestic economy and the international marketplace. One of the companies receiving assistance from the government of Boga is Syntax Electricals which produces light bulbs and other electrical items. The assistance that the government of Boga provides to Syntax - over five million dollars for an initial 4-year period - is helping the company to rebuild their factory which was destroyed during the civil war aswell as to cover production costs so that the citizens of the country can buy Syntax's products at cheaprates. To ensure that Syntax has sufficient leverage to produce enough electrical products for Boga'sdomestic economy, the government has provided additional tax incentives for the company and alsoplaced restrictions on imports of electrical products, such that only licensed companies in Boga canimport those products into the country. Because of the incentives, it receives from the government of Boga, Syntax can sell its products atcheaper prices both domestically and internationally. Products of other electrical companies are unableto compete with Syntax because of the basement rates at which it sells its products. For example, whileit costs Syntax $3.50 to produce a single led bulb, they sell it at the rate of $2.00 in Boga. Among thecountries where Syntax exports its electrical products in Vietnam where Syntax's products are competingwith those locally manufactured in Vietnam. Syntax's led bulbs are sold in Vietnam at the rate of $3.00after making the usual allowance for shipping and handling charges. The Vietnamese manufacturers -whose led bulbs are sold at the average rate of $4.50 each - are worried that they may be unable tocompete with Syntax whose electrical products come in cheaper than those manufactured in Vietnam.They are of the strong opinion that Syntax is dumping its led bulbs in Vietnam. Both Boga and Vietnamare members of the World Trade Organization. Answer the question -
3. Assuming that the country involved in this scenario is Canada rather than Vietnam, what is the procedure that a Canadian company can follow to redress allegations of dumping against foreign manufacturers of products imported into the Canadian marketplace? (5%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started