International Trade Remedies and Safeguards
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What is the primary purpose of Safeguard Measures?

  • To address unfair trade practices by foreign companies
  • To impose quantitative restrictions on imported goods
  • To provide subsidies to domestic industries
  • To address fair trade practices and prevent serious material injury to U.S. industries (correct)
  • What is a requirement for implementing Safeguard Measures?

  • Material injury to U.S. industries must be threatened or caused (correct)
  • The U.S. industry must be producing a similar product
  • The imported goods must be priced below the normal value
  • The exporting country must provide a subsidy to its exporters
  • What was the basis of the petitions filed by Georgetown Steel & Continental Steel in November 1983?

  • Subsidized and countervailable Carbon Steel Wire Rod (correct)
  • Restrictive trade practices in Carbon Steel Wire Rod
  • Discriminatory tariffs on Carbon Steel Wire Rod
  • Alleged dumping of 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

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