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domestically produced ones
after they are imported
2. I would source more from
Chinese suppliers to make
sure my cars contain more
than 60% local parts To deter shipping of unassembled
cars to obtain the lower tariff rate 1. If the WTO ruling holds, which WTO principle did China violate?
2. From GM’s perspective, how does this affect sourcing decisions?
(i.e., who you buy your parts from)
3. If you are a GM (with rising sales in China) supplier in Michigan,
what do you do in the face of these tariffs?
3/9/2014 Page: 13 3. I would set up
China to make
sure I am not at
local suppliers GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SESSION 10 1. Why the WTO and how it works
Exceptions to the three principles 1. Temporary
relief To safeguard against
import 2. Countervailing
duties Against dumping and
competition 3. Preferential
agreement Provisions for multilateral,
bilateral and regional
agreements 3/9/2014 Page: 14 e.g., punitive
tariffs on Chinese
steel pipes (or
solar panels) e.g., NAFTA, CAFTA,
EU… GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SESSION 10 7 Agenda
Why the WTO and how it works 2.
Dispute resolution and the Doha round 3.
WTO, regional, business and trade
agreements 3/9/2014 Page: 15 GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SESSION 10 2. Dispute resolution and the Doha round
How does dispute resolution work?
1. What is the process for getting redress
if you are a victim of unfair trade?
2. What are the penalties? There are less than 40
launched per year 3. Why are there so few disputes when there is so much
Is it because unfair
trade is rare?
3/9/2014 Page: 16 GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SESSION 10 8 2. Dispute resolution and the Doha round
Dispute settlement mechanism
Body Consultations with
defendant Successful Fail Plaintiff
complaint Dispute Panel Report and recommendations Complies Loser has 15 months to comply Appeal Panel Does not
comply Winner can impose penalties on
any of loser’s exports
3/9/2014 Page: 17 GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SESSION 10 2. Dispute resolution and the Doha round
Venezuela vs. US dispute 3/9/2014 Page: 18 GUY SHANI , 2014 - STRATEGY 310 - THE WORLD ECONOMY - SES...
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This note was uploaded on 04/02/2014 for the course STRATEGY 310 taught by Professor Staff during the Winter '08 term at University of Michigan.
- Winter '08
- A Christmas Carol