Economics 471 International Case Study by Sm5dWLv


									                                     Economics 471 International Case Study:
                                The US-Canadian Lumber Dispute (Lumber IV)
                                       (40 Minute PowerPoint Presentation)
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The purpose of this project is to give you the opportunity to study a case of dumping in the real world. Your
presentation will include both the political and the empirical dimensions of antidumping duties. This outline will guide
you in your preparation for the presentation.

The learning objective of this project is for you and your teams to present both the news and data that characterize the
     You are expected to produce a power point presentation that addresses each task outlined below in detail.
     You must to identify the intentions of both countries involved and how each country attempted to achieve its
     You must identify winners and losers of the “legislation.”
     Here is the minimum amount of information you are required to collect

Task                              Suggested Source
Search news articles to provide   Start with
background on the specific anti
dumping duty (including a time    ispute,
line).                            See also various other web sites like Lexus Nexus, Wall Street Journal, New York
                                  See also information on the Soft Wood Lumber Agreement
                                  or, if you have a lot of time:
                                  Economics-U-S-Canadian/dp/1933115564. Much of this can also be read on Google
                                  books (here)
Provide a timeline and            Go to the USITC website
investigation and ruling.         Click on ABOUT THE USITC  Import Injury Investigations, and

                                  2) FIND THE SOFTWOOD LUMBER INVESTIGATION
                                  Return to the home page (, and find
                                  by searching for “SOFTWOOD LUMBER”
                                       a) OUTLINE THE REASONS FOR THE TARIFF
                                       b) OUTLINE THE “REMEDIES”
                                              I. Link the proposed remedies to the determination (how are the remedies
                                                  supposed to fix the injury?)

                                  See also the Bush Administration Policy Bulletin on Lumber
                                  and the Canadian response
Task                       Suggested Source
The US is a member of      I) To understand the role of the WTO, go to
the WTO. Outline the and click on SETTLING
WTO’s official dispute     DISPUTES on the left side bar. Read the sub sections
settlement summary              a) “A UNIQUE CONTRIBUTION”
and all related                 b) “THE PANEL PROCESS.”
documents position and      Click on the AGREEMENTS section on the left side bar and read the sub sections
its ruling.                 a) “OVERVIEW”
Outlines how WTO and        b) “TARIFFS”
US gov’t/USITC              c) “ANTI DUMPING, SUBSIDIES”
positions differ            a.    Why does the WTO investigate?
                            b.    What does the WTO investigate?
                           II) Go to the WTO website On the top of the page, click on “TRADE
                           TOPICS”  DISPUTE SETTLEMENT  THE DISPUTES  find DISPUTE CASES. On the left side bar,
                           click on “DISPUTES CHRONOLOGICALLY” and find the dispute (DS247, DS264, DS277, DS311)

                           Read the case summary and click on the “ALL DOCUMENTS” on the right side of the page.
                           Create a zip file and download all documents in English. Choose the option to include an index
                           file, and choose the option to download documents in English. Open the index file once you
                           downloaded the zip.
                           What does WTO case claim to be the problem with the Countervailing Duty?
                                 1) How does the US defend itself?
                                 2) What is the WTO’s final ruling? Be very specific and detailed about the reasons for
                                     its ruling! See also
Obtain import data         Use either a UW computer or log in remotely to UW libraries to enter the UN Comtrade
(both quantity and         database. On the main UW library web page, type “COMTRADE” into the search feature. It
value) from the United     will produce search results. Click on UN COMTRADE  Connect to this title online; UW
Nations Commodity          restricted  database  DATA QUERY  BASIC SELECTION
Trade Statistics           1) SELECT CLASSIFICATION Click HS: AS REPORTED
Database in order to       2) Click on the COMMODITY tab. In Step 1 SELECT SOURCE, indicate COMMODITIES
track the volume of        SEARCH. In Step 2 SELECT ITEMS indicate SOFTWOOD in HS AS REPORTED 3. Hit
Canadian lumber            SEARCH. Check the box next to 44. Click ADD
imports to the US and      3) Click on the REPORTERS tab and select the USA (Click ADD)
(imputed) prices for the   4) Click on the PARTNERS tab and select CANADA (Click ADD after selecting each
5 years before, during     partner)
and 5 years after the      5) Click on the YEARS tab and select the years 1996 – 2010 (Click ADD after selecting each
duties were imposed.       year)
                           6) Click on the OTHERS tab and select IMPORT
                           7) Click SUBMIT QUERY
Isolate the 5 most         8) Click DIRECT DOWNLOAD to obtain an Excel file
important claims by the
WTO, USITC, Canada
and US, and comment         Graph the data for a) Trade Value, b) Trade Quantity and c) Price (Value/Quantity).
how the data relates to         1) Comment on how the duty affected a), b), c) and trade theory implications.
those claims                    2) Isolate the 5 most important claims by the WTO, USITC, Canada and US, and
                                     comment how the data relates to those claims
Obtain employment           Go to the Bureau of Labor Statistics website Click on SUBJECT AREAS
data from the Bureau of  NATIONAL EMPLOYMENT. On the left side bar, click on “CES Databases” click on
aggregate number of       ii. In field (1) click on “All employees, Thousands”
hours worked in the      iii. In field (2) click on “Durable goods”
affected industry in the iv. In field (3) click on “31321000 Wood Products”
5 years prior, during     v. Field (4) is prefilled
and 5 years post duty     vi. Field (5) click on “Get Data”
imposition.              vii. Change the date range and select the box to produce the graph
                        viii. You can also click on the link next to DOWNLOAD for an Excel file
                                                                    1) Comment on the effect of the duty on labor in the
                                                                        US. Did it have its designed effect?

                           Additional data sources for volume, price etc

                           Data Resources
                           1) “North American Lumber Annual Historical Data – 2010.” RISI.,
                           2) Hajdu, Csaba. “The US-Canada softwood lumber dispute – a brief history”
                           3) “US – Canada Trade Dispute Timeline.” Random Lengths.
OVERALL                        1) Identify ALL winners and losers of the duty.
ANALYSIS                       2) Who do you think lobbied for and against the duty? (Extra credit: Can you identify
                                  the PAC contributions of the beneficiaries of the duty?)
                               3) What additional data would you want to collect to sharpen your implications that you
                                  derived from the BLS and UNComTrade?

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