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. 23. If enacted, would the bill violate the WTO's rules on normal trade relations? A. No, because suspension of normal trade relations is an appropriate response to Guador's perceived unfair trade practices B. Yes, because WTO member states are required to extend normal trade relations to other member states under all circumstances without exception C. Yes, because the United States has not suspended normal trade relations for citrus fruits originating in other states D. No, because the requirement of normal trade relations only applies to non-tariff barriers
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. 23. If enacted, would the bill violate the WTO's rules on normal trade relations? A. No, because suspension of normal trade relations is an appropriate response to Guador's perceived unfair trade practices B. Yes, because WTO member states are required to extend normal trade relations to other member states under all circumstances without exception C. Yes, because the United States has not suspended normal trade relations for citrus fruits originating in other states D. No, because the requirement of normal trade relations only applies to non-tariff barriers
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Transcribed Image Text: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.
23. If enacted, would the bill violate the WTO's rules on normal trade relations?
A. No, because suspension of normal trade relations is an appropriate response to Guador's perceived unfair
trade practices
B. Yes, because WTO member states are required to extend normal trade relations to other member states
under all circumstances without exception
C. Yes, because the United States has not suspended normal trade relations for citrus fruits originating in
other states
D. No, because the requirement of normal trade relations only applies to non-tariff barriers
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