You are a trade official working for the (fictional) Government of Ruritania. It is a middle-income country with a population of 77 millions. Ten percent of the people are nomadic farmers. They herd horses and cattle, and sell meat, milk, cheese and handicraft products. They make their own leather which is used for many purposes. They have developed a strong export trade in leather products, particularly shoes, saddles and horse-gear. Much of the leather is famous for being dyed yellow, using the flowers of a local plant peculiar to Ruritania.

Over the past four years, there has been a steep increase in the volume of imports of cheap leather goods from Neverland (a fictional country).Ruritania's nomadicfarmers are complaining that they can no longer compete in the domestic market as theirleatherproducts are much more expensive than the imported Neverland products, and that theirsales have fallen by 50% in just two years. They have held demonstrations in the capital, which has lead to violence.

Both Ruritania and Neverland joined the World Trade Organisation (WTO) in 1996.

In attempt to tackle these issues, the Ruritania government has put forward the following measures:

1. A 50% antidumping duty is to be imposed on leathershoes and saddles imported from Neverland.

1. To introduce a law requiring all imported leather products to be made only of leather which has been dyed in a particular shade of yellow. Testing for the correct shade will be done by the Dyestuffs Department at theRuritaniaState Technical University. It is unlikely that if the law was passed that any Neverland leather products would pass the test.

Advise Ruritania Government on the legality of the above measures in light of theWTO Treaties and Case Law of the Dispute Settlement Body.