+ Types of International Trade Issues
1. Bilateral Trade Issues
Countervailing Duties Petition
2. Multi-lateral Trade Issues
Regional Treaties Negotiations - Free Trade Agreements
World Trade Negotiations - GATT, World Trade Organization
(1) Anti-Dumping Cases
Formula for approximating dumping margins
The basic definition of dumping is a comparison of the U.S. price for a particular import with a measure of the import¡¯s price or value in home or third country markets to Foreign Market Value (FMV)
In order of preference, they are
- Home market sales prices if home market sales are sufficient
- Third country sales prices if third country sales are sufficient
- ¡°Conducted value¡± consisting of fully allocated production costs
This basis is used in place of home market or third country prices if the Department of Commerce determines that those prices are below fully allocated production costs. The base price for dumping calculations in both markets is the price to the first unrelated buyer rather than any intra-company transfer prices.
In the United States and a number of other countries, dumping is regarded as an unfair competitive practice. Firms that claim to have been injured by foreign firms who dump their products in the domestic market at low prices can appeal, through a quasi-judicial procedure, to the Commerce Department for relief. If their complaint is ruled valid, an "antidumping duty" is imposed, equal to the calculated difference between the actual and "fair" price of imports.
In 1980¡¯s Mr. Jang represented clients of Korean musical instruments industry and copper industry, handling Anti-Dumping cases which were presented by U.S.A. He removed obstacles of Korea Export Industries by proving that it was not the Dumping, but fair contracts to International Trade Commission and the Department of Commerce.
(2) Trade Negotiations
Mr. Jang has professional experiences of a settlement in complex cases requiring intensive preparation and in cases which is requiring strategic approach to dispute resolution. For example, He served as advocate for a large building enterprise to negotiate a dispute involved with U.S.A., the Middle East and South America. And also he obtained the most favorable outcomes possible for his client.
International trade has grown at an unprecedented pace in these three decades, in part because of this continuous economic integration of world economy, which resulted in the total elimination of tariffs within a major trading region. In addition, this motion of world economic integration made a number of trade disputes arise.
Of all the procedures used to resolve disputes, the simplest and most utilized form is understandably Trade Negotiation which needs a skilled negotiator. It consists basically of discussions between the interested parties with a view to reconciling divergent opinions, or at least understanding the different positions maintained.