Case Study 1

Global Trade Law-BUS8330, SEC3

Bavleen Kaur

8821387

Due Date – February 2,2023

Ans 1

Dumping is an act of selling the exported products by a company in the exporting country at a price
lower than the production cost. This act of international producers poses threats to the local producers,
who are selling their products at profitable selling price (Fasken, p. 111). The cost of producing the single
bulb by Syntax is $4.00, and they are selling at the price of $3.00 in their domestic market in Boga. On
the other hand they are selling the same product for $2.5 in Vietnam. Here, Syntax is not even
recovering 40% of its cost of production. However, since its business is being subsidized by the
government of Boga to improve the economy, selling at a lower price aids the company in attracting
more customers. But, the Vietnamese businesses obtains the bulb for $5.00 each, and they face tougher
competition from the international manufacturers, who were selling their substitutes at a very cheap
price. Thus, as Syntax Sells its goods at a lower price in comparison to its manufacturing costs, the
company is certainly performing the act of umping in Vietnamese market.

Ans 2

The Special Import Measures Act (SIMA) provides rules and procedures for scrutinizing the accusations
about dumped and subsidized imports that are endangering the domestic market of Canada, and the
levying the duties in response (Fasken, p. 111).

CBSA (Canada Border Services Agency) and CITT (Canada International Trade Tribunal) act has certain
roles under SIMA to address the dumping and subsidizing issues.

CBSA has the responsibility to ensure free trade of goods and services across Canadian Borders, that are
meeting the trade criteria’s. It ensures that Canadian Business and economy is benefitted by trade
legislation and agreements that meets Canada’s international obligations (Fasken, p. 111). If it founds
that any imported product is being dumped and subsidized, it raises concerns with CITT and demands
investigations under SIMA act. It has the power to levy provisional duties within 90 days of launching
investigation.

On the other hand, CITT measures the imports to Canada, and examines whether these are dumped or
subsidized having negative effects on domestic market through SIMA measures. It responds to the
economic or tariff concerns raised by government of Canada. It hears to the appeals and make decisions
on the act of CBSA on imposing tariffs on dumped goods (Fasken, p. 111). Overall, with SIMA, it
safeguards the integrity of Government of Canada process.