quiz image

International Trade Remedies and Safeguards

CostEffectiveRadium avatar
CostEffectiveRadium
·
·
Download

Start Quiz

Study Flashcards

Questions and Answers

What is the primary purpose of Safeguard Measures?

To address fair trade practices and prevent serious material injury to U.S. industries

What is a requirement for implementing Safeguard Measures?

Material injury to U.S. industries must be threatened or caused

What was the basis of the petitions filed by Georgetown Steel & Continental Steel in November 1983?

Subsidized and countervailable Carbon Steel Wire Rod

What is the relationship between Safeguard Measures and Tariff Concessions?

<p>Safeguard Measures are an exception to Tariff Concessions</p> Signup and view all the answers

What is the consequence of not offering compensation to affected foreign companies when implementing Safeguard Measures?

<p>The foreign companies can retaliate against the U.S. by imposing their own tariffs</p> Signup and view all the answers

What was the ITA's initial determination regarding the petitions filed by Georgetown Steel & Continental Steel?

<p>Negative determination of subsidization and countervailability</p> Signup and view all the answers

What was the reason for the CIT's remand of the cases to the ITA for further proceedings?

<p>ITA's failure to consider the economic incentives and benefits provided to exporters in NME</p> Signup and view all the answers

What is the purpose of the 'escape clause' in the context of Safeguard Measures?

<p>To prevent a surge in imports from causing material injury to U.S. industries</p> Signup and view all the answers

What was the outcome of Georgetown Steel's complaint in the CIT?

<p>The complaint was dismissed due to a procedural irregularity</p> Signup and view all the answers

What is the central issue in the petitions filed by Georgetown Steel & Continental Steel?

<p>Whether the economic incentives and benefits provided to exporters in NME constitute a 'bounty' or 'grant' under Section 303</p> Signup and view all the answers

What is the primary goal of Safeguard Measures, as per the WTO rules?

<p>To ban Voluntary Restraint Agreements (VRAs) and deter protectionism</p> Signup and view all the answers

What is the requirement for imposing Safeguard Measures, with regards to imports?

<p>A sudden, sharp, and significant increase in imports</p> Signup and view all the answers

What is the main difference between material injury in Antidumping/Countervailing Duty (AD/CVD) cases and Safeguard Measures?

<p>Material injury is harder to prove in Safeguard Measures</p> Signup and view all the answers

What is the relationship between Safeguard Measures and WTO rules?

<p>Safeguard Measures are an escape clause to violate WTO rules against tariff concessions</p> Signup and view all the answers

What is the lesser duty rule in the context of trade remedies?

<p>Imposing a lesser duty than the dumping margin if that is sufficient to eliminate harm</p> Signup and view all the answers

What is the primary goal of safeguard measures according to the WTO agreement?

<p>To facilitate adjustment and revive the industry</p> Signup and view all the answers

What is the basis for determining the volume of imports before the sudden increase in imports?

<p>Last 3 representative years of imports</p> Signup and view all the answers

What is the primary reason why safeguards do not always have to be duties?

<p>Because the WTO agreement allows for flexibility in safeguard measures</p> Signup and view all the answers

What is the purpose of the International Trade Commission (ITC) requiring an adjustment plan before the implementation of safeguard measures?

<p>To plan out how to revive the industry</p> Signup and view all the answers

What is the consequence of implementing safeguard measures that are not WTO-consistent?

<p>The country implementing the measure may face both compensation and retaliation</p> Signup and view all the answers

What is the primary purpose of trade remedies in the context of WTO agreements?

<p>To allow for tariff rates above bound rates under certain conditions</p> Signup and view all the answers

What is the bound rate in the context of WTO agreements?

<p>The maximum tariff that can be levied on a good</p> Signup and view all the answers

What is the role of Article XI in the context of trade remedies?

<p>It restricts the use of quantitative non-tariff barriers</p> Signup and view all the answers

What is the purpose of the schedule of concessions for a WTO member?

<p>To outline the maximum tariff that can be levied on certain goods</p> Signup and view all the answers

What are the two government agencies in the U.S. involved in trade remedies?

<p>US DOC and US ITC</p> Signup and view all the answers

What is the primary purpose of the quantity questionnaire in the context of trade remedies?

<p>To gather information about the quantity of goods imported</p> Signup and view all the answers

What is the term for the practice of selling goods at a price lower than the cost of production or the price at which the same goods are sold in the home market?

<p>Dumping</p> Signup and view all the answers

What is the purpose of the price undertaking in the context of trade remedies?

<p>To settle the dispute without litigation</p> Signup and view all the answers

What is the term for the response to fair trade practices?

<p>Safeguard Measure</p> Signup and view all the answers

What is the definition of a subsidy according to the Agreement on Subsidies and Countervailing Measures?

<p>A financial contribution by the government that confers a benefit</p> Signup and view all the answers

What is the primary consideration for the President when deciding on Safeguard Measures?

<p>Public interest test and sustainability concerns</p> Signup and view all the answers

What is the general principle for imposing Safeguard Measures on imports?

<p>MFN, except for Special Developing Countries and FTAs</p> Signup and view all the answers

Under what circumstances can FTA countries be excluded from Safeguard Measures?

<p>If they have contributed significantly to the injury</p> Signup and view all the answers

What is the maximum duration of Safeguard Measures?

<p>Up to 8 years</p> Signup and view all the answers

What is the main difference between the injury threshold for Safeguard Measures and AD/CVD measures?

<p>Safeguard Measures require a higher level of injury</p> Signup and view all the answers

What is the purpose of AD and CVD measures?

<p>To offset the unfair behavior</p> Signup and view all the answers

What is the significance of the 'self-initiation' provision in AD/CVD investigations?

<p>It allows the government to initiate investigations on behalf of the domestic industry</p> Signup and view all the answers

What is the result of a sunset review in AD/CVD investigations?

<p>The possibility of continuation or recurrence is determined</p> Signup and view all the answers

Why are Safeguard Measures generally considered to be MFN?

<p>Because they are imposed without regard to the country of origin</p> Signup and view all the answers

What is the main difference between Safeguard Measures and AD/CVD measures in terms of their application?

<p>Safeguard Measures are applied on an MFN basis, while AD/CVD measures are applied in respect to specific exporting countries/exporters</p> Signup and view all the answers

What is the requirement for the application of a Countervailing Duty (CVD) against a new owner of a company that previously received a subsidy?

<p>The new owner must have received a direct benefit from the subsidy.</p> Signup and view all the answers

What is the consequence if the USTR declines to initiate dispute resolution before the WTO after a subsidy has been found?

<p>The requesting US industry can file a regular CVD petition.</p> Signup and view all the answers

What is the primary consideration for determining whether a subsidy is prohibited?

<p>The benefit received by the recipient of the subsidy.</p> Signup and view all the answers

What is the requirement for an 'interested party' to request the Commerce Dept to investigate a suspected subsidy?

<p>The party must be a domestic producer of the same or similar goods.</p> Signup and view all the answers

What is the purpose of the US law allowing an 'interested party' to request the Commerce Dept to investigate a suspected subsidy?

<p>To protect the US industry from unfair trade practices.</p> Signup and view all the answers

What is the primary requirement for a domestic subsidy to be considered actionable under the SCM?

<p>The subsidy must be demonstrated to cause injury to the domestic industry.</p> Signup and view all the answers

What is the key difference between the treatment of export subsidies and domestic subsidies under the SCM?

<p>Export subsidies are prohibited, while domestic subsidies are only actionable if they cause adverse effects.</p> Signup and view all the answers

What is the primary challenge in challenging subsidies under the WTO?

<p>Proving that the subsidy causes adverse effects to the interests of another member</p> Signup and view all the answers

What is the term for the benefit conferred on a recipient through a Direct Transfer of Funds, such as a loan guarantee or low-interest loan?

<p>Preference</p> Signup and view all the answers

What is the primary requirement for a country to take advantage of the exception to the MFN requirement under Article VI of the GATT?

<p>The country must show that the effect of the subsidy is to cause or threaten material injury to the domestic industry.</p> Signup and view all the answers

What is the relationship between the US countervailing duty law and the WTO's Agreement on Subsidies and Countervailing Measures?

<p>The US law is substantially similar to the WTO's SCM</p> Signup and view all the answers

What is the purpose of the countervailing duty in the context of unfair trade practices?

<p>To remove the benefit of the subsidy by offsetting it at the border</p> Signup and view all the answers

What is the key element in determining the existence of a subsidy under Article 1 of the Agreement on Subsidies and Countervailing Measures?

<p>The financial contribution by the government</p> Signup and view all the answers

What is the relationship between the countervailing duty and the estimated bounty or subsidy under Article VI of the GATT?

<p>The CVD cannot be in excess of the estimated bounty or subsidy</p> Signup and view all the answers

What is the consequence of a country's failure to demonstrate the causal link between the subsidized imports and the material injury to the domestic industry?

<p>The country may not impose a CVD on the subsidized imports</p> Signup and view all the answers

In Non-Market Economies, what is the challenge in determining the existence of a subsidy?

<p>The state owns most of the actors in the market, making it difficult to distinguish between a command economy and a market economy.</p> Signup and view all the answers

What is the primary purpose of Countervailing Duties?

<p>To offset the effect of unfair trade practices on domestic markets.</p> Signup and view all the answers

In the context of Countervailing Duties, what is the relationship between material injury and causation?

<p>Material injury is a necessary condition for causation, but not sufficient.</p> Signup and view all the answers

What is the significance of the 'snapshot' period in AD and CVD investigations?

<p>It is a period of investigation that is typically one year, during which unfair trade practices are examined.</p> Signup and view all the answers

What is the purpose of Special Rules in Countervailing Duties?

<p>To ignore the market in Non-Market Economies and look at another un-manipulated economy.</p> Signup and view all the answers

What is the primary consideration for rebutting the presumption of arm's length sale at fair market value in the context of subsidized imports?

<p>Demonstrating that market conditions were severely distorted by the government</p> Signup and view all the answers

What is the effect of a privatization on subsidies, according to the WTO Appellate Body?

<p>The subsidies will only terminate if the sale is at fair market value</p> Signup and view all the answers

What is the key factor in determining whether a subsidized import is considered a countervailing duty?

<p>The level of subsidization</p> Signup and view all the answers

What is the relationship between material injury and countervailing duties?

<p>Material injury is a requirement for imposing countervailing duties</p> Signup and view all the answers

What is the primary purpose of countervailing duties in the context of unfair trade practices?

<p>To protect domestic industries from subsidized imports</p> Signup and view all the answers

Which of the following is a necessary condition for the imposition of a Countervailing Duty?

<p>Causation between the subsidy and the material injury</p> Signup and view all the answers

What is the primary difference between a subsidy under Article 1 of the SCM and a subsidized import under Article 2 of the SCM?

<p>The benefit conferred on the recipient</p> Signup and view all the answers

In the context of trade remedies, what is the primary purpose of establishing a causal link between the subsidized import and the material injury?

<p>To attribute the material injury to the subsidized import</p> Signup and view all the answers

What is the primary requirement for a finding of material injury in the context of trade remedies?

<p>The threat of material injury</p> Signup and view all the answers

Which of the following is an example of an unfair trade practice addressed by the WTO's Agreement on Subsidies and Countervailing Measures?

<p>Subsidization</p> Signup and view all the answers

According to the Agreement on Subsidies and Countervailing Measures, what is a subsidy?

<p>A financial contribution by a government</p> Signup and view all the answers

What is the main goal of the Agreement on Subsidies and Countervailing Measures?

<p>To regulate subsidies and countervailing measures</p> Signup and view all the answers

What is the purpose of countervailing duties?

<p>To offset the benefit of a subsidy</p> Signup and view all the answers

What is material injury in the context of unfair trade practices?

<p>A harm caused to a domestic industry</p> Signup and view all the answers

What is the relationship between the US countervailing duty law and the WTO's Agreement on Subsidies and Countervailing Measures?

<p>The US law is consistent with the WTO agreement</p> Signup and view all the answers

What is the key element in determining the existence of a subsidy under Article 1 of the Agreement on Subsidies and Countervailing Measures?

<p>A financial contribution by a government</p> Signup and view all the answers

What is the primary consideration for determining whether a subsidy is prohibited?

<p>Whether it causes material injury</p> Signup and view all the answers

What is the purpose of the 'escape clause' in the context of Safeguard Measures?

<p>To provide an exception to the MFN requirement</p> Signup and view all the answers

What is the consequence of not offering compensation to affected foreign companies when implementing Safeguard Measures?

<p>The country will be subject to retaliation</p> Signup and view all the answers

What is the relationship between the countervailing duty and the estimated bounty or subsidy under Article VI of the GATT?

<p>The countervailing duty is equal to the estimated bounty or subsidy</p> Signup and view all the answers

What is the primary consideration for rebutting the baseline presumption of non-recurring subsidies after a privatization?

<p>Showing that the sale was not an arm's length transaction for fair market value</p> Signup and view all the answers

What is the implication of the WTO Appellate Body's ruling on the effect of privatization on subsidies?

<p>Privatization can extinguish subsidies, but with several catches and tests</p> Signup and view all the answers

What is theDOC's role in determining the fair market value of an arm's length sale?

<p>To analyze the sale price based on factors such as market conditions and government influence</p> Signup and view all the answers

In what circumstances can a sale be considered an arm's length transaction for fair market value?

<p>When the sale price is at market value, and market conditions are not severely distorted by the government</p> Signup and view all the answers

What is the potential consequence of a government's influence on market conditions during a sale?

<p>The market conditions may be severely distorted, affecting the sale price</p> Signup and view all the answers

In the context of countervailing duties, what is the primary consideration for determining whether a subsidy is actionable?

<p>The presence of a benefit to the recipient</p> Signup and view all the answers

How can a state-owned producer, such as a gas company, distort the market?

<p>By regulating the price of natural gas</p> Signup and view all the answers

What is the primary goal of calculating the subsidy margin in a countervailing duty investigation?

<p>To determine the amount of the countervailing duty</p> Signup and view all the answers

What is the primary consideration in determining the existence of a subsidy in a Non-Market Economy?

<p>The degree of government intervention in the economy</p> Signup and view all the answers

What can be a positive externality of a low-carbon footprint in the market?

<p>Environmental benefits</p> Signup and view all the answers

In the context of market distortion, what is the primary effect of a subsidy on the market?

<p>It creates an unfair advantage for the recipient</p> Signup and view all the answers

How does the Countervailing Duty Law address the issue of market distortion in economies with significant government intervention?

<p>By looking at another unmanipulated economy to gather data</p> Signup and view all the answers

What is the primary purpose of the Countervailing Duty in the context of unfair trade practices?

<p>To offset the effect of subsidies on domestic imports</p> Signup and view all the answers

What is the challenge in calculating the benefit conferred by a subsidy in a State-Influenced Economy?

<p>Estimating the degree of government intervention in the economy</p> Signup and view all the answers

How does the concept of positive externalities relate to the calculation of subsidies?

<p>It is a methodology for estimating the benefit conferred by a subsidy</p> Signup and view all the answers

What is the primary requirement for a subsidy to exist under the SCM Agreement?

<p>A financial contribution by a government</p> Signup and view all the answers

What is the primary challenge in determining the existence of a subsidy in a state-owned economy like China?

<p>Establishing the commercial benchmark</p> Signup and view all the answers

What is the consequence of a non-specific subsidy in the context of the SCM Agreement?

<p>It is not subject to the SCM Agreement disciplines</p> Signup and view all the answers

What is the primary goal of countervailing duties in the context of unfair trade practices?

<p>To prevent market distortion</p> Signup and view all the answers

What is the purpose of calculating the commercial benchmark in a subsidy investigation?

<p>To provide a basis for comparison with market rates</p> Signup and view all the answers

What is the key concept in determining whether a government's equity infusion is a subsidy?

<p>The consistency of the investment decision with private investor practice</p> Signup and view all the answers

What is the significance of specificity in the context of the SCM Agreement?

<p>It is a determinant of whether a subsidy is subject to the SCM Agreement disciplines</p> Signup and view all the answers

What is the result of a government's revenue forgone, such as through tax exemptions or reductions?

<p>A subsidy</p> Signup and view all the answers

What is the primary challenge in addressing subsidies in the context of state-influenced economies?

<p>Determining the existence of a subsidy</p> Signup and view all the answers

What is the primary effect of a subsidy on the market?

<p>It distorts market prices</p> Signup and view all the answers

What is the consequence of a privatization on subsidies, according to the WTO Appellate Body?

<p>The arm's length sale at fair market value will, by itself, terminate the benefit of the prior subsidy.</p> Signup and view all the answers

What is the requirement for an 'interested party' to request the Commerce Dept to investigate a suspected subsidy?

<p>The party must have a direct financial stake in the investigation.</p> Signup and view all the answers

What is the primary consideration for determining whether a subsidy is prohibited under the WTO Agreement on Subsidies and Countervailing Measures?

<p>The benefit conferred on the recipient.</p> Signup and view all the answers

What is the consequence of a country's failure to demonstrate the causal link between the subsidized imports and the material injury to the domestic industry?

<p>The investigation will be terminated and no countervailing duty will be imposed.</p> Signup and view all the answers

What is the primary goal of the Agreement on Subsidies and Countervailing Measures, as per the WTO rules?

<p>To prevent the use of subsidies to distort international trade.</p> Signup and view all the answers

What is the primary condition for a country to impose countervailing duties on imported goods?

<p>The importing country must demonstrate material injury to its domestic industry.</p> Signup and view all the answers

In calculating the benefit of a subsidy, what is the key factor to consider?

<p>The value of the goods produced or exported using the subsidy.</p> Signup and view all the answers

In state-influenced economies, what is a challenge in determining the existence of a subsidy?

<p>Distinguishing between government support and private investment.</p> Signup and view all the answers

What is a potential positive externality of a low-carbon footprint in the market?

<p>Improved air quality and reduced environmental harm.</p> Signup and view all the answers

In the context of trade remedies, what is the purpose of a countervailing duty?

<p>To offset the benefit of a subsidy to the recipient.</p> Signup and view all the answers

What is the consequence of a government's influence on market conditions during a sale?

<p>The sale is considered a non-market economy transaction.</p> Signup and view all the answers

In calculating the benefit of a subsidy, what is the role of Article 14 of the Agreement on Subsidies and Countervailing Measures?

<p>It sets out the rules for calculating the benefit of a subsidy.</p> Signup and view all the answers

What is the primary requirement for a country to take advantage of the exception to the MFN requirement under Article VI of the GATT?

<p>The country must follow the specific rules for imposing countervailing duties.</p> Signup and view all the answers

What is the effect of a countervailing duty on the benefit of a subsidy?

<p>It reduces the benefit of the subsidy to the recipient.</p> Signup and view all the answers

What is the primary goal of countervailing duties in the context of unfair trade practices?

<p>To offset the benefit of a subsidy to the recipient.</p> Signup and view all the answers

More Quizzes Like This

International Trade and Finance Quiz
5 questions
Trade Remedies Quiz
5 questions

Trade Remedies Quiz

CatchyFriendship avatar
CatchyFriendship
Trade Policy and Remedies Review
40 questions
Use Quizgecko on...
Browser
Browser