Question
Iberia, a WTO Member, is the major producer and exporter of steel worldwide. Over the last five years, the volume of steel exports has dramatically
Iberia, a WTO Member, is the major producer and exporter of steel worldwide. Over the last five years, the volume of steel exports has dramatically increased with a corresponding decrease in the global price of steel due to the ability of Iberia to produce steel at very low costs due to the government's financial assistance to the Iberia Steel Export Company. Moritoria, a WTO developing country member and importer of Iberia's steel, has an infant industry in steel production for domestic consumption. Moritoria's steel industry has expressed concern that the importation of steel from Iberia would threaten to retard the advancement of the domestic steel industry at the current volume and price. Moritoria has signalled intent on imposing countervailing and anti-dumping measures because of the risk of their domestic steel markets collapsing.
(a) Advise whether Moritoria's intent to impose countervailing and anti-dumping measures are appropriate responses to the actions of Iberia in the context of the WTO rules on subsidies and dumping.
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