China Versus Japan: On the Verge of a Trade War Harvard Case Solution & Analysis

In April 2001, Japan curb imports on three Chinese agricultural products - fresh shiitake mushrooms, reed grass mats, and Chinese onion. In response, in June 2001, China introduced a 100% punitive tariff on imports from three Japanese export goods - cars, mobile phones and air conditioners. Japan accused of violating WTO rules. The dispute was resolved in the future, but, given that China is not a member of the WTO in a dispute, the dispute has caused a lot of debate on trade protection measures. Introduces students to the WTO dispute settlement mechanism, and compares it to the old GATT system, and emphasizes the role of political interest groups in trade policy. The issues were whether Japan case referring to the protective measures, or was it simply to protect its powerful shiitake mushroom farmers. In addition, whether the WTO membership, in turn, to protect China from trade disputes such as this. "Hide
by Carola Ramon-Berjano, Ka-Fu Wong, Hitomi Iizaka Source: University of Hong Kong, 16 pages. Publication Date: 04 May 2007. Prod. #: HKU660-PDF-ENG

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