Question
Once upon a time a long long time ago in 2020, there was a world-wide Pandemic.(Sound familiar?) Suddenly, there was a high demand for surgical
Once upon a time a long long time ago in 2020, there was a world-wide Pandemic.(Sound familiar?) Suddenly, there was a high demand for surgical masks and hand sanitizer.In the United States, there was a need for both these items.Manufacturers in the United States began producing more masks than they had in the past.Now they needed masks for the general public, not just for medical professionals.In fact, many corporations that never existed in the past, opened and began making masks in response to the pandemic.The mask industry in the United States was booming.As for hand sanitizer, there had always been hand sanitizer for the general public, so the hand sanitizer industry in the United States, just needed to produce more hand sanitizer.
Other countries increased their export of masks and hand sanitizer to the United States.
The fair value for a surgical mask is 5 cents per mask.The fair value for hand sanitizer is $5 per gallon.
In the United States, The International Trade Administration (ITA) of the Department of Commerce notices that Norway is importing masks to the United Stated for 2 cents per mask.The ITA also notices that there is a lot more hand sanitizer coming in from Norway. The hand sanitizer from Norway is being sold for $1 per gallon, clearly less than fair value as well.The International Trade Commission determines that there has definitely been injury to the hand sanitizer industry in the US, but the mask industry was still booming.
The US retaliates by charging Norway extra import duties on Norway's masks and hand sanitizer.
Norway, belonging to the WTO, complains that the US is deviating from the WTO's binding tariff, treating them differently than all the other most-favored nations.
The response from the US is as follows:Under the WTO's Anti-dumping Agreement we are required to charge extra import taxes.And we can rightly charge the extra tax on both the masks and the hand sanitizer. Also, under the Tariff Act of 1930, we also can charge extra imports on both those items.
Questions: (When I ask how an entitly will rule, I am asking if the tariff should be permitted or not)
Based on the information you have:
Under the WTO - is the US correct, regarding the WTOrequirementfor the taxes. (explain)
Under the WTO anti-dumping laws, how should the Dispute Settlement Body (DSB) rule regarding the tax:
- on the masks.(explain).
- on the hand sanitizer (explain)
Under the Tariff act of the US - How should the Court of International Trade rule regarding the tax on the masks?(explain). How should the Court of International Trade Rule regarding the tax on hand sanitizer. (explain)
I want you to explain each of your answers.Tell us what rule, law or standard is applicable, what does the law require, and how the law is applicable to the mask or the hand sanitizer."The United Sates can tax whoever they want" is an insufficient answer without identifying the law and explaining why it is applicable in this particular case. These are not one-sentence answers, but we all know that by now. Your Discussion posts should be well written paragraphs.
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