Question

in WTO economics

can i have summarize of this please:

Furniture

Newland has three important manufacturers of furniture: AEKI, Schoeder and StyleMark. Together, they represent 70 per cent of the domestic furniture industry. Many small manufacturers make up the rest of the industry. Over the last few years, all manufacturers of furniture in Newland have been exporting an ever increasing part of their production to Richland, as the trendy but cheap furniture from Newland is quite popular with consumers in Richland.

The furniture industry in Richland is not happy with this development. The market share of the domestic furniture manufacturers has steadily decreased over recent years and many of the smaller manufacturers are going out of business. The six major furniture manufacturers, which together represent about 56 per cent of total furniture production in Richland, want to take action against the imports of furniture from Newland. They request the Government of Richland to impose anti-dumping on the furniture imported from Newland or to take any other action that would reduce the flow of furniture from Newland. They are convinced that the furniture from Newland is sold on the market of Richland at prices far below the cost of production. They claim that this is the case in particular for bedroom furniture produced by AEKI and StyleMark. However, upon reflection, Ikelea, one of the six Richland furniture manufacturers, loses interest in the initiation of an anti?dumping investigation. Ikelea has a joint venture with Newland manufacturer StyleMark that operates in a third country.

Alarmed by reports in the Financial Times on the calls of the Richland furniture industry for action against imports of furniture from Newland, the Government of Newland turns to the Advisory Centre on WTO Law (ACWL) for legal advice on whether, and under what conditions, Richland may, consistent with WTO law, impose anti-dumping duties or take any other action. Newland also wants to know what procedures WTO law prescribes for the imposition of anti-dumping duties. Should Richland be allowed to impose such duties, Newland wants to know: (1) whether duties may be imposed on all furniture imported from Newland; (2) the maximum level of duties that may be applied; and (3) the maximum length of time duties may be imposed.

The Executive Director of the ACWL has instructed you, a junior lawyer at the Centre, to prepare a presentation for a group of Newland trade officials and representatives of the Newland furniture industry addressing the concerns and queries put forward by the Government of Newland.

Answer 1

Newland has three important manufacturers of furniture: AEKI, Schoeder and StyleMark.

Over the last few years, all manufacturers of furniture in Newland have been exporting an ever increasing part of their production to Richland, as the trendy but cheap furniture from Newland is quite popular with consumers in Richland.

The market share of the domestic furniture manufacturers has steadily decreased over recent years and many of the smaller manufacturers are going out of business.

The six major furniture manufacturers, which together represent about 56 per cent of total furniture production in Richland, want to take action against the imports of furniture from Newland.

Upon reflection, Ikelea, one of the six Richland furniture manufacturers, loses interest in the initiation of an anti?dumping investigation.

Alarmed by reports in the Financial Times on the calls of the Richland furniture industry for action against imports of furniture from Newland, the Government of Newland turns to the Advisory Centre on WTO Law for legal advice on whether, and under what conditions, Richland may, consistent with WTO law, impose anti-dumping duties or take any other action.

Should Richland be allowed to impose such duties, Newland wants to know: whether duties may be imposed on all furniture imported from Newland; the maximum level of duties that may be applied; and the maximum length of time duties may be imposed.

The Executive Director of the ACWL has instructed you, a junior lawyer at the Centre, to prepare a presentation for a group of Newland trade officials and representatives of the Newland furniture industry addressing the concerns and queries put forward by the Government of Newland.