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

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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