Question
Suppose that Country M imports steel pipes from three countries, N, O, and P at the price of $250, $270, $270 per ton, respectively, whereas
Suppose that Country M imports steel pipes from three countries, N, O, and P at the price of $250, $270, $270 per ton, respectively, whereas M's domestic producers' price is $300.
Country M concluded an FTA with the neighboring country Q and agreed to exclude Country Q from the global safeguard action unless the imports from Q are substantial cause of the serious injury of Country M. Ever since the FTA between M and Q has entered into force, most of steel pipe manufacturers in Country M moved to Q so as to take advantages of low production costs. The total imports from Q to M account for about 15% of the entire imports of Country M, when the overall imports continue to increase by 60% for the past three years.
As a special advisor to Country M Trade Minister, what kind of measure would you recommend to address the current problem? Please explain the reasons and pertinent issues for the measure you suggest.
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