Exam 9: The World Trade Organization: Basic Legal Principles

Guador,a small country in South America,is a member of the WTO.American fruit producers recently succeeded in persuading several members of Congress to introduce a bill to remedy Guador's alleged unfair trade practices in the citrus fruit industry.The bill provides for a unilateral threefold increase in the tariff solely applicable to citrus fruits originating in Guador.Furthermore,the bill imposes periodic testing procedures upon Guadorian citrus fruits from which American producers are exempt.Finally,the bill caps imports of Guadorian citrus fruits into the United States at $20 million in value annually.If enacted,would the bill violate American obligations pursuant to the GATT? Why or why not?

Which of the following is not true regarding WTO dispute settlement procedures?

A "free trade" nation has no barriers to trade.

Each nation has the power to regulate imports into the country and the primary mode of control is to regulate import competition.

The Uruguay round of tariff negotiations was the first major multilateral trade negotiating session since World War II.

While WTO reports carry no weight as precedent,subsequent panels often consider them,and they can create legitimate expectations as to the interpretation of the treaty by WTO members.