model analysis:

as shown in the figure, the output of the enterprise is divided into two parts, which are sold in domestic and foreign markets respectively. Because the demand price elasticity of the manufacturer's products in the domestic and foreign markets is different, the shape of the demand curve at home and abroad faced by the manufacturer is also different. Generally speaking, the shape of foreign demand curve faced by manufacturers is relatively flat, while the shape of domestic demand curve faced by manufacturers is relatively steep. According to the characteristics of domestic and foreign markets, manufacturers sell at different prices in order to obtain the maximum profit.

the conditions for a manufacturer to decide its price and sales distribution scheme are: MRH=MC=MRF

where: MRH is the marginal revenue of the manufacturer in the domestic market, MRF is the marginal revenue of the manufacturer in the foreign market, and MC is the marginal cost of the manufacturer.

nature: this kind of dumping behavior is to seek maximum profit, and it is an enterprise behavior driven by interests. As long as it is not restricted, it will continue.

(2) Predatory dumping: In order to exclude competitors in the market, exporters temporarily sell goods to foreign markets at lower prices, and once they achieve their goals and gain a monopoly position, enterprises will raise prices again to obtain monopolistic excess profits.

nature: this is an act aimed at defeating opponents and pursuing monopoly position, and it is an act of unfair trade.

6. Mutual dumping

refers to the two-way trade of the same product caused by dumping. That is, A and B sell the same product to each other at a price lower than the domestic price.

suppose there is a monopoly manufacturer at home and abroad, and they produce the same products, and the two manufacturers have the same marginal cost, and the transportation cost between the two markets is also the same. If they set the same price, there will be no trade, but if dumping is used, trade will happen.

Both manufacturers will limit the sales volume in the domestic market to control the price of their products in the domestic market, but if a manufacturer can sell at a price lower than its domestic price in the other market, because the negative impact of price reduction will be passed on to the opponent instead of being borne by himself, it will also increase its profits, so each manufacturer has the motivation to occupy the other market. And sell its products at a price higher than its marginal cost but lower than its domestic price. However, if both manufacturers do this, international trade will appear even assuming that the initial prices of products in the two markets are the same and both pay transportation fees.

7. Anti-dumping duties

(1) Anti-dumping duties refer to the import surcharge levied by the government of the importing country on the products of a foreign exporter when it is confirmed that the goods sold to the domestic market have been dumped.

(2) Impact:

① It can reduce the domestic demand for low-priced imports;

(2) make the import price rise to the level of the domestic market price of the importing country, thus protecting the domestic producers of similar commodities.

Case 8-3: Egypt implements anti-dumping measures against China porcelain

The Egyptian Ministry of Foreign Trade has made a decision this week to take anti-dumping measures against porcelain tableware imported from China, and began to impose tariffs as high as 35%.

reason: the influx of China porcelain into the Egyptian market has already had an impact on similar products in China, which has greatly reduced the production of local porcelain processing plants and caused a serious inventory backlog. It is understood that Egypt imported 2, tons of porcelain from China last year, accounting for 96% of Egypt's annual porcelain imports.

published in Yangzi Evening News on February 26, 23

VI. Other Non-tariff Barriers

1. voluntary export restraints: refers to the commodity exporting countries voluntarily restricting the export quantity or export amount of certain commodities in a certain period of time at the request or pressure of the importing countries.

voluntary export restraints implemented export restriction measures under the pressure of importing countries, which are similar to quotas. The number of voluntary export restraints is determined through negotiations between importing countries and exporting countries.

function: it can make it difficult for exporters' superior products to enter the domestic market.

2. Discriminatory public procurement: it is a non-tariff barrier measure that a government gives domestic suppliers priority to obtain government procurement orders according to the relevant national legal system.

The government procurement gives priority to the purchase of domestic goods, which forms discrimination against foreign sellers.

3. State monopoly of foreign trade: "State-owned trade"

means that state-owned enterprises or public enterprises have obtained the privilege to directly operate international trade, thus forming a state monopoly of foreign trade.

Disadvantages: artificially distorting the allocation of resources, resulting in overprotection and inefficiency.

4. technical standards and health and quarantine standards

(1) technical standards refer to the relevant provisions made by the importing country to ensure that the import quality of various commodities meets the general technical requirements.

in order to restrict the import of certain commodities, some countries often stipulate some technical standards that are difficult for foreign countries to master, so as to prevent foreign businessmen from entering their own markets.

(2) Health and quarantine standards: refers to the necessary health and quarantine carried out by a country on imported animals and plants and their products, food, cosmetics, etc. to prevent diseases or pests from being introduced into the country.

It is worth noting that some countries often shut out foreign products on the pretext that imported goods do not meet their own hygiene standards.

Case 8-4: "Bird subsidy" was declared illegal by the WTO

The Bird Amendment passed by the US Congress in 2 requires the US government to directly subsidize the punitive taxes collected in anti-dumping and countervailing cases to American companies whose interests are damaged, instead of turning them over to the US Treasury.

The United States has implemented double protection for domestic companies through the Byrd Amendment, which actually encouraged domestic companies to initiate anti-dumping and countervailing lawsuits, thus being strongly criticized by trading partners. It is reported that in 21 and 22, the United States subsidized about $561 million to its domestic companies in this way.

This practice of the United States has been opposed by major trading partners including the European Union and Japan. To this end, the European Union, Japan, Canada, Brazil, India, South Korea, Mexico and Chile have recently applied to the WTO for permission to levy additional tariffs on some products from the United States equivalent to the amount of US government subsidies.

in January 23, the WTO finally ruled that the amendment violated global trade rules, and requested the United States to abolish it before December 27th of that year. But the United States has not implemented the WTO ruling.

On August 31, 24, the World Trade Organization authorized eight members, including the European Union, to impose trade sanctions on the United States as a punishment for the United States' delay in abolishing the Byrd Amendment, which was declared illegal by the WTO.

Case 8-5: Appearance becomes a trade barrier. China stationery is sued by American enterprises.

It looks similar, but there will be problems. Recently, Sanford Company, a famous American stationery enterprise, accused 12 enterprises around the world that their marker pens exported to the United States infringed their "trademarks and trade dress", and it has been formally filed by ITC (United States International Trade Commission). Four enterprises in China, including Ningbo Beifa Group, were listed in the dock.

It is reported that "trade dress" is one of the "Section 337" of trade protectionism unique to the United States. Except for intellectual property rights such as copyright, trademark and patent, the United States has the right to question the appearance similarity of imported products. This time, Sanford Company accused China Beifa marker pen of infringing its "commercial appearance" by virtue of this clause.

Although the sales volume of products involved in Befa Group in the United States is only $5,, it is still prepared to spend $1.5 million to respond to the lawsuit. From an economic point of view, it is definitely not cost-effective, but Zhou Jie, Befa's legal adviser, told reporters that making such a choice is based on three considerations: first, giving up is automatically giving up and giving up the right to compete for the market; Second, we can defend the interests of the whole industry by responding to the lawsuit. Because in case of losing the case, and the final ruling of ITC gives a general description of the sanctioned marker pen, it will be implicated in the export of other domestic stationery enterprises-this is not impossible. The third consideration is that even if the so-called "trade dress" infringement can be established, it will be troublesome for the US to clearly define the scope of the "minefield" so as to save China enterprises from being unclear.

For this accusation, several enterprises involved in China are indignant and think that the US is simply making things difficult. In fact, there is no clear legal definition of the concept of "trade dress" in the United States, only a general provision: "Consumers can immediately distinguish a product from a famous brand according to its appearance, which is infringement." The final ruling is also finalized by the judge, which is quite like the "overlord clause." It is understood that China's pen-making enterprises were careful before exporting, and they went to the US Patent Office and Trademark Library to inquire before entering the US market. However, they were still cautious step by step.

More and more enterprises in the United States are using this unique law to frequently set up obstacles to China goods, the real purpose of which is not to protect intellectual property rights, but to protect their own market share. It is understood that the pen involved in Befa's case has only been in Wal-Mart for 2 months, and its sales volume is 7 times that of Sanford's "similar pen"! Befa believes that consumers will never confuse the appearance, but because the quality of the two pens is similar but the price difference is 2%, they finally choose the China pen with good quality and low price. Interestingly, among the other 11 companies accused by Sanford, there are Korean companies and some American importers, but Wal-Mart is also an importer of Befa, but Sanford deliberately avoids directly competing with the giant Wal-Mart. According to Yu Danhua, deputy director of Ningbo Foreign Economic and Trade Commission, Sanford guessed the thoughts of China enterprises: harass China enterprises maliciously. Considering the high litigation cost and low sales volume in the United States, China enterprises will mostly give up the battle, so their market share will be handed over.

But this time, Sanford's abacus may be wrong. Zhou Jie told reporters that Befa is ready to take a few steps. The first step is to question whether the so-called "trade dress" infringement is established. According to the legal procedure, it is necessary to make a public opinion survey-will Befa's products be mistaken for a "famous commodity" at a glance? The first step doesn't work, and then argue that there are significant differences between the two pens. Because Beifa has clearly marked its own trademark, it is also obviously different in appearance. "The arbitrariness and bias of the ruling are not ruled out, which depends on the personal quality of the judge, but we still have to do our best to fight for rights!" Zhou Jie said.

chapter IX economic integration and customs union

I. forms of economic integration

(1) economic integration: refers to an economic cooperation organization established by two or more countries or economies through reaching some kind of agreement.

(2) Free trade zone: refers to an economic integration organization formed by two or more countries or administratively independent economies through reaching an agreement to cancel import tariffs and other measures with the same effect as tariffs.

Case 9-1: WTO and Free Trade Zone

China has been a member of WTO for three years. After joining WTO for three years, China has changed its cautious attitude towards the slow pace and narrow vision of participating in free trade zones. Looking around, in order to obtain the benefits of free trade, trade negotiations are everywhere in the world. When every round of WTO negotiations is going into a protracted tug-of-war, bilateral free trade agreements have gradually become a trend.

The construction of China-ASEAN Free Trade Area will finally enter a new era in 25. Has China found a big market? In fact, China enterprises may not be able to sell more products in view of the narrow market of ASEAN, but the breakthrough of China-ASEAN Free Trade Area shows that China is entering the trend of free trade area (FTA). Looking at the WTO from another angle, China will gain more.

Some experts have long believed that the ASEAN market is too narrow. Among more than a dozen ASEAN member countries, there are Singapore, a newly industrialized country, and the least developed countries in the world such as Vietnam, Myanmar, Laos and Cambodia. The regional population is less than 6 million, and the total GDP is not high. Moreover, most developed ASEAN countries pursue export-oriented strategy, and the export products, like China, are mainly labor-intensive products.

In terms of trade volume, the United States and Japan are the main trading partners of ASEAN, and China may sell more middle and low-end consumer goods and mechanical and electrical products in the future. Compared with ASEAN products, China will have obvious comparative advantages in textiles, food, grains, building materials and other products, but more benefits will be brought by ASEAN countries.

If we only look at FTA from the perspective of product export, the benefits brought by China-ASEAN Free Trade Area to China may not be so great. However, if we look at free trade from another angle, China may gain a lot. Another angle I am talking about here is the benefits of "unilateral free trade" proposed by some economists. In other words, even if the other side adopts the attitude of trade barriers, it is beneficial to open up free trade unilaterally.

most simply, the cheaper and better agricultural products from ASEAN have at least benefited China consumers. In addition, a large amount of energy and raw materials imported from ASEAN countries also meet the economic needs of China's rapid development. In recent years, with the rapid economic development, China's imports of raw materials from ASEAN have also increased, and there has been a big deficit.

At present, China is still negotiating free trade zones with some countries in Australia, Chile, the Middle East and Africa. By comparison, we can know that these countries are not simple to China. First of all, these countries are distributed on all continents, which can almost be regarded as the front stop of China's FTA strategy in various regions around the world; Secondly, these countries are likely to provide abundant energy and raw material resources for China's continued rapid economic development, such as Australian iron ore, Chilean copper mine and oil resources in Middle East and African countries.

even if the establishment of each free trade zone brings a small amount of direct product exports to China, the establishment of more FTAs may achieve the effect of gathering a few and making many a mickle, thus partially changing the situation that China's product exports are too dependent on the US and EU markets.

from a more complicated point of view, even if the establishment of a free trade zone does not benefit from economic benefits, we may gain advantages from a non-economic perspective, which will affect the next economic benefits. The recognition of China's market economy status by ASEAN countries this year is an obvious strategic victory and one of the biggest gains of China's "early harvest plan". At present, a prerequisite for free trade negotiations between Australia and China is "whether to recognize China's market economy status".

In the negotiation of bilateral free trade agreements, China can express its opinions more actively, let the world know more about China, and participate in formulating more reasonable rules of the game. The more bilateral free trade agreements are concluded, the greater the voice of China in the new round of multilateral trade negotiations.

1. Features:

(1) The barriers to commodity trade among participants in this economic organization have been removed, and manufacturers in member economies can freely export and import commodities, thus realizing the free trade of commodities, but it strictly limits this trade treatment to participating countries or member countries.

(2) There is no external tariff between member economies. Free trade among member economies does not prevent member economies from adopting other trade policies against non-free trade zone members.