Question

Part 1: Bilateral Trade Disputes
Please find a trade dispute between Mexico and U.S. Please note these are disputes involving trade--not political disputes involving geographical issues. In some cases there might be more than one dispute between the countries, so just select the most recent one.

Answer these questions:
1. Background: Provide a clear and insightful synopsis of the situation in about 80-100 words
2. Which two governments are involved in the dispute?
3. When did the dispute take place (or begin)?
4. What is the product (or service) involved in the dispute?
5. What action is being taken? (Be very specific)
6. What is the objective of the action (or threatened action)?
7. What was the final outcome, if it has not yet been resolved?

Part 2: Other Trade Disputes
1. Do a news search and find an example of a trade dispute between two countries other than the ones mentioned above, and answer the same seven questions: (For example: China-Japan Trade Dispute)
2. Which two governments are involved in the dispute?
3. When did the dispute take place (or begin)?
4. What is the product (or service) involved in the dispute?
5. What action is being taken? (Be very specific)
6. What is the objective of the action (or threatened action)?
7. What was the final outcome, if it has not yet been resolved?

Part 3: Reflection
What did you learn from this assignment that surprised you?

Solution Preview

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Part 1: Bilateral Trade Disputes

1. Background: Provide a clear and insightful synopsis of the situation in about 80-100 words
The price of sugar has plummeted below the US cost of production because Mexican imports to the US have doubled. According to the North American Free Trade Agreement (NAFTA), there are no restrictions on the amount of sugar that Mexico can export to the United States, but US producers are calling Mexican sugar exports “predatory trade practices”. They allege that the Mexican government is subsidizing sugar to boost exports to the US at prices that are lower than fair (market) value (LTFV).

2. Which two governments are involved in the dispute?
The two governments involved in the dispute are the United States and Mexico.

3. When did the dispute take place (or begin)?
The dispute began unofficially when Mexican exports to the US began to rise a few years ago. A petition to investigate the issue was filed at the US International Trade Commission (ITC) by the American Sugar Coalition in March 2104....

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