This is the Trade Law Exercise Term Paper Example | Topics and Well Written Essays - 2000 words

This is the Trade Law Exercise - Term Paper Example The WTO law that Newland first has to look into is based on the definition of unfair and what is considered as problematic to the company. Unfair trade is based on cartel agreements, price fixing and the abuse of a dominant position in the market. There are also specific rules that are based on dumping which Newland will need to look into. The dumping and subsidization that Newland is currently practicing doesn’t show that they are violating provisions of the WTO law and are practicing in compliance with what is expected in these terms. However, the problems with others in Richland lead to questionable actions that can be taken against Newland. Changing the operations then becomes necessary to keep offering products within Richland. Dumping and Newland Dumping is defined as bringing a product into another country at a lower value and price of the product. WTO doesn’t prohibit the practice of dumping in an organization; however, the problems with dumping becoming harmful to the domestic affairs to the community cause the WTO standards to change to ensure consistency and that specific regulation measures are taken. From this viewpoint, Newland isn’t breaking any laws, specifically in terms of dumping. They offer specific prices at a lower value to Richmond; however, this isn’t one that is considered illegal according to WTO practices. The problem that is arising is based on the domestic harm that is occurring. Richmond is now having difficulties with suppliers of the domestic product, which is causing the main conflict and has led to a loss of income and many businesses have lost their practice to Newland. The loss of business shows that there needs to be a different provision specifically for Richland because of the crisis with domestic products. While Newland technically isn’t breaking any laws with the anti-dumping measures, there are specific ways in which Richland can form against the large amount of profit that Newland is taking. The first way is through Article VI of GATT 1994. This states that if a specific company or individual files a grievance against the company, then it can be referred to in court. These specific actions against dumping may move into civil or criminal proceedings and penalty. However, since there are no other regulations with anti-dumping measures in the WTO law, this is dependent on a case by case basis. The only determinant is if the law suit is filed correctly and with the right type of grievances. However, under this same agreement, price undertakings and provisional measures are not the responsibility of WTO. The individual case that has to be created against Newland has to take calculations and measure to prove that dumping is being done, specifica lly in terms of price and the amount of products that are being sold. The calculation first implies that dumping is occurring, which compares the price to price value of Newland and other furniture manufacturers. Newland is known for carrying cheap furniture; however, the production isn’t inclusive of being outside of the price zone of other furniture zones and can’t be calculated. For Newland to be subjected to anti-dumping duties there would need to be proof that the furniture is below the regulation level for selling the furniture under priced. Determining whether the sale is in the ordinary course of