Case Study

849 words - 4 pages

3.In the soybean case, what was the measure adopted by the Chinese government to protect soybean farmers from import surges, and what are the
WTO parameters for instituting such measures?

Answer:

China imported 49% of Brazil’s soybean sued until July 2012. These were 17.1 million tones from 34.9 Total you bought. Thus, the South American country is located on the first exporter of oilseed Asian giant, the largest global importer of the product. (Kassai and Colitt, 2013)
Brazilian soybean exports to China were being used to feed domestic cattle and poultry stocks in China. This rise in the demand for soybeans reflected the discovery by animal nutritionists that combining 1 part ...view middle of the document...

China’s consumption of soybeans ballooned by more than 160% between 2000 and 2011 when import barriers were removed, but the area planted with soybeans declined by 20% during those same years. Chinese farmers were simply unable to compete with imported soybeans that were RMB 300 to 600 (US$45-90) cheaper per ton than domestic beans. Imported soybeans now account for three-quarters of the soybeans processed into cooking oil and feed in China, the products of soybean crushing.
If China is able to prove that domestic soybean producers are not able to survive because of low cost imports from Brazil, the WTO ruling would be in favor of China and such measures would be upheld. However, if such measures were used as retaliation to Brazilian ban on Chinese toys, the WTO ruling would be in favor of Brazil and China would not be able to restrict import of Soybean from Brazil.

REFERENCES

Raghavan, Chakravarthi (2000). The World Trade Organization and its Dispute Settlement System. Retrieved from: http://www.twnside.org.sg/title/tilting.htm
Kassai Lucia, Colitt Raymond. (2013). Brazil Soy Boom Bottlenecked as China Left Waiting: Commodities. Retrieved from http://www.bloomberg.com/
Busch, Marc L. Eric Reinhardt (2003), “Developing Countries and GATT/WTO Dispute Settlement”, Journal of World Trade 37(4)
Filess Barbara, Schonfeld Raymond, (2011). Using International Standards in Regulations. OECD Provides a New Tool for Governments. Retrieved from: http://www.astm.org/SNEWS/MJ_2011/perspective_mj11.html
World Trade Organization. (2014). Technical barriers to trade. Retrieved from: http://www.wto.org
World Trade Organization. (2014). Agreement on...

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