Wto Case

Tasks: 1) Review the articles and explain what is the core of the dispute * The core of the dispute are economic relations between countries and its companies, which stand in WTO. In these situations each country tries to defend its rights and win, so WTO’s primary task is to solve the arising problems guided with one of the main principles – non-discrimination. The rule requires that a WTO member must apply the same conditions on all trade with other WTO members, i. . a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members. So in the case of China – USA dispute WTO uses this principle and forces China to open the market for U. S. movies, music and books. China regulated US movies and music so far in order to protect their domestic entertainment market. But WTO ruled that China has to open to foreign entertainment materials according to globalization. ) Find and present at least three another disputes which are at the agenda of the Dispute Settlement Body of WTO. * DISPUTE DS450: China — Certain Measures Affecting the Automobile and Automobile-Parts Industries * The United States requested consultations with China concerning certain measures providing subsidies in the form of grants, loans, forgone government revenue, the provision of goods and services, and other incentives contingent upon export performance to automobile and automobile-parts enterprises in China. DISPUTE DS455: Indonesia — Importation of horticultural products, animals and animal products * The United States requested consultations with Indonesia concerning certain measures it imposes on the importation of horticultural products, animals and animal products. * DISPUTE DS456: India — Certain Measures Relating to Solar Cells and Solar Modules * The United States requested consultations with India concerning certain measures of India relating to domestic content requirements u nder the Jawaharial Nehru National Solar Mission (â€Å"NSM†) for solar cells and solar modules. ) Explain the term â€Å"dumping prices† * Dumping price is name for the practice of selling a product in a foreign country for less than the price in the domestic country, or the cost of making the product. Such a low prices may constitute a competition problem; e. g. when a company, which is dominating in a market, â€Å"dumps† their price, and the price drops so far that the company sells at a loss in order to eliminate a competitor. * Dumping in CZE: Radim Jancura commented a situation about Regio Jet. They have lost about 50mil.Kc in 2012 and he accused CD of dumping prices. Commentator was surprised to hear that from Jancura, who provided tickets for 1Kc from Prague to Liberec in the beginning. And Jancura explained: â€Å"It’s not dumping prices when it’s small beginning company, because it can’t destroy the competition. But when the comp any owns more than 30% of the market, than it’s dumping†¦ † 4) Which other commodities are object of protectionist measures? * As we come closer to a free trade, the protectionist measures become weaker. You can read also Thin Film Solar CellNevertheless, there are commodities, which can be a good example of protectionism. The EU imposes substantial tariff rates on many agricultural markets in order to increase the income of European farmers through increasing prices. The most significant examples are meat, dairy products, vegetables, cereals, sugar and agricultural products. There was a 20-years â€Å"banana war†, which consisted in great tariffs on banana imports from Latin America. Exporters had to pay â‚ ¬176 per ton of bananas.But then 10 Latin American countries signed a â€Å"historic† agreement to end the â€Å"banana wars† and banana prices are expected to fall by 11%. Argentina has increased imports duties on 100 products, including over a dozen agricultural goods. Tariffs on the import of milk powder increased to 9% after there was a threat of falling incomes to Argentinian farmers. Apart from commodities mentioned above, we think it can be also all types of commodities which are somehow important for the domestic economy (eg. because of domestic jobs, certain key industries, etc. ——————————————– [ 1 ]. WTO | dispute settlement – the disputes – DS450. World Trade Organization [online].  © 2013 [cit. 2013-03-05]. Dostupne z: http://www. wto. org/english/tratop_e/dispu_e/cases_e/ds450_e. htm [ 2 ]. WTO | dispute settlement – the disputes – DS455. World Trade Organization [online].  © 2013 [cit. 2013-03-05]. Dostupne z: http://www. wto. org/english/tratop_e/dispu_e/cases_e/ds455_e. htm [ 3 ]. WTO | dispute settlement – the disputes – DS456. World Trade Organization [online].  © 2013 [cit. 013-03-05]. Dostupne z: http://www. wto. org/english/tratop_e/dispu_e/cases_e/ds456_e. htm [ 4 ]. Dumping (pricing policy). In: Wikipedia: the free encyclopedia [online]. San Francisco (CA): Wik imedia Foundation, 2001- [cit. 2013-03-05]. Dostupne z: http://en. wikipedia. org/wiki/Dumping_(pricing_policy) [ 5 ]. Examples and Types of Protectionism – Economics Blog. Economics Help – Simplifying Economics [online].  © 2013 [cit. 2013-03-05]. Dostupne z: http://www. economicshelp. org/blog/6911/alevel/examples-of-protectionism/