IBT News Blog

http://online.wsj.com/article/SB120475150477614511.html

This article, published couple of weeks ago, discusses the ‘unfair’ practice by US Customs who were making shrimp importers post a surety bond as insurance for the antidumping tariff. The article calls the suspicious bond as “a novel accounting trick”. As a result of the bond, many shrimp importers were being run out of business as they had to overextend their credit lines. Nevertheless, the bond has been determined by a WTO panel as inconsistent with America’s WTO obligations. The unfairness is clearly evident, as dumping tariffs are not supposed to be protectionist tool that completely impede any foreign imports.

An interesting aspect of the imposition of the bond is how lobbying groups from shrimp producing States are more powerful in Congress than shrimp importing States. Whenever we have discussed antidumping in class, it is important to always consider the internal politicking that goes on in the halls of Congress between the different States. At the end of the day, the concept of antidumping has been continuously misused as a way to protect local industry rather than create a fair trade system. It seems as if the WTO panel has to constantly be on the watch for this because politicians are looking out for their local constituents more. As we have seen in our case studies, however, WTO has given the member countries’ local authorities considerable leeway in determining antidumping tariffs. However, with the imposition of this bond, the penalty was so great that it was irrefutable that the bond was purely protectionist. The article ends by saying that such measures are not in America’s interest, because they hurt America’s credibility. As we have seen in class, however, that credibility does not seem to be strong already.

submitted by: Mohammad

One aspect of globalization is the expansion of international tourism. This article presents an interesting perspective on the implications of opening areas of cultural and religious significance to tourist trade using the example of the Luang Prabang area of Laos, which has historically been a haven for Buddhist monks and monasteries. See http://www.iht.com/articles/2008/04/13/asia/luang.php

This article discusses the marketing strategy of a Chinese sneaker producer. See http://www.iht.com/articles/2008/04/11/business/WBJOE12.php

This article discusses the decisions of the G7 regarding the currency market. See http://www.iht.com/articles/2008/04/13/business/rtreconomy.php

The IMF has issued a new statement containing its projections for the impact of rising food costs on a global scale. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7344892.stm

After riots over food supplies, the Haitian parliament has decided to remove its prime minister. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7344729.stm