Analysis of International Trade Dispute: Australia- Anti dumping Measures on A4 Copy Paper

This report analyzes the international trade dispute between Australia and Indonesia regarding anti-dumping measures on A4 copy paper. It discusses the legal frameworks involved, advantages and disadvantages of the event, and provides recommendations for future actions. The report also evaluates the perception of the role in the country's approach to the trade agreement and cites legal cases to support the view. The subject is Business Legal Frameworks and the course code is not mentioned. The course name and college/university are not mentioned either.

BUSINESS LEGAL FRAMEWORKS
INTERNATIONAL TRADE
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TABLE OF CONTENTS
Introduction...........................................................................................................................................2
1. International business trade problem.............................................................................................3
2. International trade incident between your country and another country (maybe intellectual
property, direct financial investment, a free trade agreement, international labour,...........................3
Evaluation..........................................................................................................................................5
3. Perception of the role in your country’s approach to the trade agreement. Cite 2-3 legal cases to
support your view..............................................................................................................................6
4. Evaluate the advantages and disadvantages surrounding this event...............................................8
5. Second conclusion.......................................................................................................................10
6. International business legal frameworks that the case touches on and make recommendations...10
REFERENCES....................................................................................................................................11
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Introduction
The business legal framework are policies, obligations and rights of companies,
citizens and the governments set in an authorized system that are present in the legal
documents of a country. The documents can include: the country’s constitution, policy,
contracts, legislation & regulations as well (Zhou & Peng, 2021). In international trade,
businesses have to follow various legal frameworks. The international legal framework states
the regulations and rules on the sale of goods on a global level. The report will aim to reflect
on a business issue which is associated with an international business with the help of the use
of a business legal framework.
Describe
1. International business trade problem
The issue chosen here is the “Australia- Anti dumping Measures on A4 copy
paper”. The issue is considered in World Trade Organization (WTO). Here, the complainant
was Indonesia and the respondent was Australia. There were various third parties which are
involved in the dispute such as Canada, European Union (EU), China, Singapore, Thailand,
The United States and Korea, etc. The consultation was requested on 1st September 2017,
following which the Panel was requested on 14 March 2018 and it was established on 27
April 2018. After that, the investigation panel was composed on 12 July 2018 and the panel
report circulated on 4 December which was adopted later on 27 January 2020 (Eliason &
Fiorini, 2021). It can be analysed that specific working in international countries have to be
further improved on for bringing wider change practically. Australia is one of the widely
expanding country having wide legal business procedures, and also developing competent
functional rise among new legal proceedings.
2. International trade incident between your country and another country (maybe intellectual
property, direct financial investment, a free trade agreement, international labour,
The issue emerged as on 1st September 2017, Indonesia sought consultation with a
disputing party i.e. Australia, regarding the measures associated with pressing an anti-
dumping order on the A4 copy paper. The investigation & inquiry was initiated. Indonesia
claimed that the measures which are used by Australia, were not consistent with the Article
2.2., article 2.2.1.1 as well 2.5 of the Anti-Dumping Agreement. The article 2.2 states the
methods which should be used in the calculation of dumping margins through the
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establishment of new criteria for assessment of sales below costs. In simple words, it
determines the justification for the imposition of various evaluated remedies for anti-dumping
measures. Article 2.2.1.1 describes the adjustment mechanisms for start-up costs as well as
the acceptance criteria for cost calculation which is based on the accepted accounting
principles in exporting countries. It states the remedies which could be used for the
calculation of the use of benchmark cost in the calculating of Constructed Normal Value.
Subsequently, various third parties such as China, The US and The EU requested to join the
consultations. Then Australia stated to DSB that, it has agreed to the request of consultations
made by The United States, China and EU.
The dispute was concerned with the anti-dumping duties which were pressed by
Australia on the exporters from Indonesia for the export of A4 copy paper. In this, Indonesia
claimed that the country was inconsistent with some provisions of Anti-dumping agreement
initiated by the WTO (Lesmana & Koesnaidi, 2019). It was analyzed that, Australia imposed
duties that ranged from 30% to 40% based on the comparison of constructed export prices
with normal values. These established values were associated with particular items of input in
their replacement values, which is, prices of pulp exported by South American producers and
Brazilian producers to Korea & China. They were not based on real costs which are written
down in financial records of exporters. So, the cost adjustment was ranked as the most
debated topic in the WTO’s anti-dumping law.
Feeling
UK have various trade agreement with EU such as EU-UK trade and cooperation
Agreement. It is the free trade agreement which was signed on 30 December 2020 which
involves parties such as European Union, European Atomic Energy Community and the
United Kingdom. After the dispute the perception of UK towards Indonesia have changed.
Prior to the incident, Australia had supported Indonesia for growth. But, now the relations
have changed ever since.
It has raised questions in the corporate world, related to the appropriateness of the use
of Anti-dumping measures created by the WTO, for addressing what are the fundamental
subsidy problems that are being face by people. The legal laws faced in country
internationally are specific correlated to bring on new extended developed criteria, and
improvise business scenarios among working platforms.
Evaluation
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The changes introduced after the event have contributed new measures being
imposed or in force. Prior to the case, the anti-dumping measures focuses on capital intensive
industries and produced intermediate goods. It means the steel products use to make 86 % of
new investigations and they make up-to 60% of all measures in forces. The major
disadvantage of the case is that is that it has become questionable now up-to what extend the
measure of WTO will be applicable.
The issue taken is the Anti-dumping obligations, which were pressed by Australia on
the exporter i.e. Indonesia for A4 copy paper. As it is clear that under some situations the
WTO agreement of Anti-dumping is permitted to press some anti-dumping measures to count
the harmful effects of dumping on local countries by import obligations. It was found that
Australia was not complying with the duties or obligations. Also, it can be analysed that
Australian anti-business obligations are found to be competent, for bringing new scale
measures being adopted in companies. There has to be further practical significant
benchmarks worked on, towards leveraging untapped new scale growth competitively.
Indonesia had made various claims in the dispute regarding Australia under the Anti-
dumping agreement of the WTO. Due to certain situations of the market, some sales don’t
permit appropriate contrast. Indonesia demanded the basis for Australia’s determination of
that certain market condition. It had affected the government-induced dissertations of
Indonesia’s paper and pull industries, as well as the costs of A4 copy paper, were much less
than the regional benchmarks of Indonesia (Zhou & Qu, 2021). This is where things went
wrong and disputes occurred. In the investigation, the panel found that none of the situations
were necessarily excluded which formed a certain market situation. On this basis, it was
concluded that the situations which Indonesia stated were not necessarily excluded from
which a certain market condition can be determined. So, on this basis, it concluded that
Australia had acted inconsistently in the Articles of Anti-dumping Agreement of the WTO
because a certain market condition was found in Indonesia’s domestic market that affected
the A4 copy papers industry. Australian business goals are found to be also integral where
specific working benchmarks have to be optimised on for extensive scale expansion
fundamentally. On 21 September 2018, Australia had demanded additional rights for third
parties to be involved in the proceeding.
Analysis
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3. Perception of the role in your country’s approach to the trade agreement. Cite 2-3
legal cases to support your view
As per perception of the role in country’s approach to the trade agreement, the
two-trade agreement can be easily used by countries such as manipulate the terms-of-
trade that is (i.e. the price of its exports relative to its imports. It is also known as
traditional approach in which countries that are having more cannot resist the
temptation to act in their own interests. Therefore, the main aim of traditional trade
agreement is improving its terms-of-trade and increase national income market power
Secondly, commitment approach in which government wishes to use discretionary trade
policy to increase social welfare, such as it is mainly used to respond to uncertain events
or allow temporary protection to an infant industry.
CITATION OF LEGAL CASES TO SUPPORT VIEW
1. Likewise, the Indonesia negotiating history of the 1967, Anti-Dumping Code has
maintained the term “particular market situation". This is term that cannot be
used in order to distortions in the cost of inputs. Such as Implementation of the
Anti-Dumping Code, Indonesia has cited that the Ad-Hoc Group demonstrate
input cost issues without having any agreement related to regulate "input
dumping". Hence the Indonesia has argued that the use pf phrase “"particular
market situation” is mainly used to intend situations of low-priced inputs.
Furthermore, there inclusion in anti-dumping agreement and 1967 Anti-
Dumping Code is point of discussion in terms of observing issue pertaining to
input dumping (AUSTRALIA – ANTI-DUMPING MEASURES ON A4 COPY
PAPER, 2019). Therefore, the panel did not say that low input cost is equally
affect manufacture of product concerned, rather than it also depend on number
of factors such as prevailing condition of competition in market, existing
relationship between price and cost.
2. Secondly, the real issue is dumping margin determination that leads to the
imposition of the anti-dumping measures. Likewise in the case, IA is used to
determine normal value by making use of full cost of production and sale and
plus a profit. However, the actual cost has to be estimated on the basis of
whether the home market prices are above cost or not (AUSTRALIA – ANTI-
DUMPING MEASURES ON A4 COPY PAPER, 2019). Moreover, Indonesia
stated that Australia was not following up with various articles of the Anti-
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dumping agreement of the WTO. These disputes gained media coverage
quickly. There was no conduct found in required analysis on disregarded
domestic sales of A4 Copy paper. It was also analysed that Indonesia lacked
evidence and also they were inconsistent due to the pieces of evidence
represented by Australia. Therefore, the central of business issue pertaining to
trade is that the accurate price has not be determined related to which the
products must be sell in another country.
4. Evaluate the advantages and disadvantages surrounding this event.
 Advantages of event: Australian international business framework law has been
identified, as it further has been found to be specific regarding new businesses
expansion. It enabled to grasp productive knowledge about adherence importance for
strengthening long term international goals. It has examined in depth about Australia
international business legal frameworks, where by compliance of new legal standards
new diverse benchmarks can be reached among working operations. The advantage
of event is A4 copy paper producers benefit to Australia because it provides
access to cheaper raw material inputs. Hence the overall price in Australia
domestic market has gone down to down to competitive prices or able to get the
require product.
 Disadvantages of event: Event of anti-dumping commission did not conduct required
analysis which has disregarded domestic sales of A4 copy paper. It has been bad for
Australia international trade agreements, where compliance to legal standards were
not followed. There was no conduct found in required analysis on disregarded
domestic sales of A4 Copy paper without proper determination of sales that did not
permit it. The government of Indonesia and hardwood pulp producer have no
evidence pertaining to that it is cheaper to manufacture the produce acacia pulpwood
in Indonesia than in other Asian or South American countries. Hence the
Australia has not gain any of the competitive advantages. In current proceeding,
Indonesia appears to have abandoned this line.
Action plan
As per my views, various things from this case can be learned and analyzed for the
future course of actions by countries as well as organizations on local levels. From the
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dispute, different courses of action plans were determined. The dispute raised questions in
up-to which extends the Anti-dumping agreement can allow parties to intervene in the market
distortions. It has left various other significant issues open on an international level. These
issues relate to the use of benchmarks for the calculation of costs which leaves the wide
latitude for investigation of authorities for dumping margins in practice (Wickes & Director,
2018). The actions to be taken in the future, which are taken from the dispute involve the
assessment of the case before taking any further action.
The international business legal framework involved in the case is World Trade
Organization’s Anti-dumping measures. Various sections of the framework were used such as
section 2.2 and section 2.2.1.
6. International business legal frameworks that the case touches on and make
recommendations.
International business legal frameworks
Australian corporation act 2001, is the main legislation regulating companies in Australia
which covers companies and other entities such as partnerships in business working grounds.
It regulates matters about registration of business. Likewise, the, Australia did not calculate
the cost of production for A4 copy paper on the basis of the records kept by those
producers, although all the record have been made as per the generally accounting
standard of Australia. As well as they reasonably reflected the actual cost of production
of A4 copy paper. Hence as per the legal framework it has failed to properly calculate
the cost of production and properly construct the normal value for those producers that
has adversely impacted on the paper business of Indonesia causing them losses.
Recommendations
1. Australia businesses for further extending new scale expansion in international
businesses, should adhere to new optimum commercial legislations. This will make
sure that compliance is developed on extensive new working grounds. Australia has to
also frame new strict laws for companies to develop rise in new standards of
international business.
2. It can be suggested that the Australia or any other country while making trade
agreement must considered the record of all cost that producer have incurred in order
to manufacture the products. Along with it, the market situation in order to have
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accurate detailed related to overall cost that has been made by company to
manufacture an specific products in order to earn specific profit margin.
5. Conclusion
Recent analysis on Anti-Dumping Measures on A4 copy paper has concluded
that it is good for Australia as it is able to get the product at low price possible because
Indonesian paper industry has got benefit from government in terms of subsidies over the
timber and pulp market. Two welfare that has been gained by Australia are motivations of
the Australian paper industry and imperfectly competitive market in Australia paper market in
which company operates. Hence, it can be stated that Australia have gained benefits.
Lesson drawn is that international business legal framework is crucial for
countries to compile by, where Australia has to frame new strict laws for businesses.
The paper shows that the panel's interpretation of “particular market
situation” increases the relative attractiveness of using anti-dumping
duties instead of countervailing measures. At the same time, it has been
learned that demonstrates that the effect of the market situation on domestic sales
prices in Indonesia has not lead in competitive advantages between producers selling in
the Indonesian market. At last it has been learned that while understanding the
accurate price of products of export in international market, all other factors also need
to be considered despite of overall cost that is market situation and many more.
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REFERENCES
Books and journals:
Brink, G.F., (2021). On" Dumping" and the Competition Act of South Africa: No" double
remedy", De Jure Law Journal, 54, pp.1-15.
Crock, M. Grey, R., Appleford, F., Gunawardhana, A., Hutchesson, M., Jerogin, J., & Zou,
K. (2021). Cases before International Courts and Tribunals concerning Questions of
Public International Law Involving Australia 2020, The Australian Year Book of
International Law Online, 39(1), pp, 431-464.
Eliason, A. & Fiorini, M. (2021). Australia–Anti-Dumping Measures on A4 Copy Paper:
Opening a Door to More Anti-Dumping Investigations, World Trade Review, 20(4),
479-490.
Joseph, S. & Selvam, D.M. (2019). The Incompatibility of Anti-Dumping
Laws, International Journal of Engineering and Management Research, 9.
Kim, S. M. & Bohanes, J. (2020). Australia–Anti-Dumping Measures on A4 Copy Paper,
DS529, World Trade Review, 19(3), 480-484.
Lesmana, Y. Y. & Koesnaidi, J. W. (2019). Particular Market Situation: A Newly Arising
Problem Or a New Stage in the Anti-Dumping Investigation, Asian J, WTO & Int'l
Health L & Pol'y, 14, 405.
Sohlberg, M. (2020). United States–Countervailing Measures on Supercalendered Paper from
Canada, DS505. World Trade Review, 19(3), pp.478-480.
Vermulst, E. & Sud, J.D. (2020). Are the EU’s Trade Defence Instruments WTO Compliant?,
In Global Politics and EU Trade Policy (pp. 231-253), Springer, Cham.
Wickes, J. & Director, I. (2018). FOR OFFICIAL USE ONLY.
Zhou, W. (2018). The issue of ‘particular market situation’under WTO anti-dumping law:
In Non-market Economies in the Global Trading System (pp. 185-200), Springer,
Singapore.
Zhou, W. & Peng, D. (2020). Australia–Anti-Dumping Measures on A4 Copy Paper,
WT/DS529/R.
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Zhou, W. & Peng, D. (2021). Australia—Anti-Dumping Measures on A4 Copy
Paper. American Journal of International Law, 115(1), 94-101.
Zhou, W. & Qu, X. (2021). Confronting the ‘Non-Market Economy’Treatment: The Evolving
WTO Jurisprudence on Anti-Dumping and China’s Recent Practices, UNSW Law
Research Paper, (21-51).
Online references:
AUSTRALIA – ANTI-DUMPING MEASURES ON A4 COPY PAPER, 2019. [Online].
Available through: < https://www.wto.org/english/tratop_e/dispu_e/529r_e.pdf>.
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Appendix
International trade incident between your country and another country (maybe intellectual
property, direct financial investment, a free trade agreement, international labour,
The intervention has led towards two key realizations, one of which is the welfare
implications on which the decisions are made and the other is the importance of demanding
subsidies instead of following up the anti-dumping duties. In it, subsidies in the investigation
have negative environmental effects. In the panel, the articles were reviewed and interpreted
thoroughly. The panel concluded that Australia was inconsistent with its obligation related to
Article 2.2, as the ACD had disregarded the local sales of A4 copy paper without appropriate
determination. Further, the panel stated that Australia did not have the authority to fail/reject
the written down costs as stated in the Article 2.2.1.1. The panel also stated that Australia did
not comply with the Article 2.2 as it failed to describe why substitute pulp for paper involved
the profits, despite the fact that it had produced its own pulp and then transferred it to the
manufacturing facility without revenue. However, Indonesia did not claimed the same. The
panel reports were submitted on 11 November 2019, which concluded that it cannot be
determined if Australia was inconsistent with the Anti-dumping articles as Indonesia had not
made clear assessments on what a normal market situation is (Kim & Bohanes, 2020).
Feeling
According to my opinion, the issue will lead towards the situation of ‘tit for tat’ in
anti-dumping measures. It will work as fuel in the current crisis of globalization as there is
international cooperation happening in the trade regulations (ARATO, 2021). I think in the
absence of an authorized body i.e. functional Appellate Body, it will become uncertain that
how the panels in the future will review remaining issues. All this will create a further crisis
in trade on a global level which will be difficult to handle.
Evaluation
This stated that Australia had disregarded the domestic market sales based on Article 2.2.
Indonesia could have gathered more pieces of evidence and then made claims. In my opinion,
doing these things differently could have helped Indonesia to make its claims much stronger
(Brink, 2021). Also, Australia had support from various other parties which made the case
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more in favour of Australia. From the whole case, I think Indonesia’s claims were weaker, as
they lacked proper evidence as well as support from other parties. Indonesia had claimed that
Australia was inconsistent with Article 2.2 of the WTO’s Anti-dumping agreement because
no certain situation of the market was found which is according to the 2.2 article. It can be
argued that, Australia has disregarded the basis for market sales, in which a proper price
comparison could be determined and was possible as well (Sohlberg, 2020). However, in the
ADC’s investigation, Australia had stated that “a certain market situation” did existed in the
Indonesian market due to which Indonesia’s claims to determine the normal values were not
suitable for Australia. In this case, Indonesia had failed to investigate the issue of whether the
domestic market allowed the proper comparison or not. Therefore, it only argued and made
claims based on a certain situation of the market and not on anything else to determine costs.
Therefore, in my view, it was the fact that led towards Australia’s favour more than in the
favour of Indonesia.
CITATION OF LEGAL CASES TO SUPPORT VIEW
The most important factor in the whole situation was the Anti-dumping agreement of the
WTO as well as how it was interpreted. The factors “a certain market situation” as well as the
interpretation of the word “normal” used in the contracts of both the parties involved i.e.
Australia and Indonesia was determined (Zhou, 2018). The whole conflict was based on the
articles not being followed by Australia which had affected the A4 copy paper market and
pulp market of Indonesia. The factors which contributed to the situation were the articles of
the Anti-dumping agreement of the WTO. Analysis of international business structural
working signifies best determined pace to leverage structural vision, and harness competent
developed technicality innovatively. Trade management, signifies best scale working
expansion to improvise wider keen expertise innovatively.
Indonesia has claimed that Australia was inconsistent with some articles of Anti-dumping
agreement. For example, the articles were 2.2 of the WTO’s anti-dumping agreement.
Australian business scale working is largely specific, to evolve on wider working parameters
and enhance new integral growth working innovatively. International laws are being abided
and specifically adhered to bring on improvised working rise, and generate new business
grounds within extensive paradigms.
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Action
Another action is to always have the proof and evidence to bear the burden of proof. It should
also be taken into account that in a case such as this the importance of challenging subsidies
is much more significant than the imposing of anti-dumping duties in which parties in the
investigation have negative environmental effects. Companies in recent businesses, have been
also working to bring on extensive new scale measures optimised and advance up procedures
for competitive functional growth informatively. It has also developed integral working
efficacy to be improvised on rapidly and generate timely growth in implementation of
business laws.
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