Question 1

What are the similarities and differences between the GATT and WTO dispute resolution procedures?

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) both have dispute resolution procedures in place to address conflicts between member countries. However, there are some key similarities and differences between the two.

Similarities:
1. Both GATT and WTO dispute resolution procedures are designed to provide a forum for member countries to resolve trade disputes in a fair and impartial manner.
2. Both procedures emphasize the importance of reaching a mutually acceptable solution through consultation and negotiation before resorting to formal dispute settlement mechanisms.
3. Both procedures aim to enforce the rules and obligations set out in the respective agreements, ensuring that member countries adhere to their trade commitments.

Differences:
1. The GATT dispute resolution procedures were less formal and binding compared to the WTO's more structured and legally binding dispute settlement system. The WTO's dispute settlement process is more effective in enforcing compliance with its rulings.
2. The GATT dispute resolution procedures lacked a clear timeline for the resolution of disputes, while the WTO's procedures have strict deadlines for each stage of the process, ensuring a more efficient and timely resolution.
3. The GATT's dispute resolution mechanisms did not have an Appellate Body, which is a key feature of the WTO's dispute settlement system. The Appellate Body provides an additional layer of review for disputes, enhancing the credibility and predictability of the process.

In summary, while both GATT and WTO have dispute resolution procedures, the WTO's system is more formal, binding, and effective in enforcing compliance with its rulings compared to the GATT's less structured and informal procedures.

Question 2

Assess the relative value of a reported U.S. appellate (or trial) decision and a WTO panel report in a trade dispute.

Accepted Answer

When assessing the relative value of a reported U.S. appellate or trial decision and a WTO panel report in a trade dispute, it is important to consider the context and jurisdiction of each decision.

A reported U.S. appellate or trial decision holds significant value within the United States legal system and may have a direct impact on the parties involved in the dispute. However, its influence may be limited to the specific case and may not have broader implications for international trade relationships.

On the other hand, a WTO panel report in a trade dispute carries weight within the framework of international trade agreements and can have implications for multiple countries involved in the dispute. The decisions made by the WTO panel are binding on the parties involved and can result in the imposition of trade sanctions or other measures to enforce compliance.

In terms of relative value, a reported U.S. appellate or trial decision may have more immediate and direct impact on the parties involved, but a WTO panel report carries broader implications for international trade and can affect the relationships between multiple countries. Therefore, it is important to consider both types of decisions in the context of the specific trade dispute and the broader international trade framework.

Question 3

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.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

When import regulations are readily available to importers and exporters, they are considered to be transparent.

Accepted Answer

A) True 
 B)False

Question 6

The phrase to describe when a foreign government's import regulations are not made readily available to the public or are hidden or disguised in bureaucratic rules or practices is:

Accepted Answer

A)  not transparent. 
B)  unfair trade practices. 
C)  bureaucratic procrastination. 
D)  limited access. 
A)  not transparent. 
B)  unfair trade practices. 
C)  bureaucratic procrastination. 
D)  limited access.

Question 7

Tariffication is the process in which quotes, licensing schemes, and other nontariff barriers to trade are "converted" to tariffs.

Accepted Answer

A) True 
 B)False

Question 8

Tariff concessions under GATT are recorded in tariff schedules, which are detailed product-by-product listings of all tariff obligations for that nation.

Accepted Answer

A) True 
 B)False

Question 9

An embargo only applies to imports from Cuba, Sudan, North Korea, and Egypt.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  A complaining party can request consultations to seek a solution. 
B)  Even if a solution is not reached, the panel has no authority to authorize trade sanctions. 
C)  Other member nations with a "substantial interest" in the case may make written submissions and oral arguments before the panel. 
D)  An appellate body of three people will hear appeals from a panel case. 
E)  All of the above are untrue. 
A)  A complaining party can request consultations to seek a solution. 
B)  Even if a solution is not reached, the panel has no authority to authorize trade sanctions. 
C)  Other member nations with a "substantial interest" in the case may make written submissions and oral arguments before the panel. 
D)  An appellate body of three people will hear appeals from a panel case. 
E)  All of the above are untrue.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Countries A and B both produce coffee. Both countries belong to GATT. Country A imports coffee from B. Once B's coffee enters A's stream of commerce, under the national treatment provisions of GATT:

Accepted Answer

A)  country A cannot subject B's coffee to higher internal taxes or charges than its domestic coffee. 
B)  country A may now charge higher internal taxes or charges on B's coffee in order to discourage coffee drinking since the goods have already passed the border. 
C)  country A cannot subject B's coffee to any internal taxes or charges, even if it does so to domestic coffee. 
D)  none of the above is correct. 
A)  country A cannot subject B's coffee to higher internal taxes or charges than its domestic coffee. 
B)  country A may now charge higher internal taxes or charges on B's coffee in order to discourage coffee drinking since the goods have already passed the border. 
C)  country A cannot subject B's coffee to any internal taxes or charges, even if it does so to domestic coffee. 
D)  none of the above is correct.

Question 13

Which of the following is an example of a specific or flat tariff?

Accepted Answer

A)  A 15% tariff on the value of a shipment of t-shirts 
B)  A $10 tariff on each barrel of petroleum 
C)  A 20% discount on the value of peaches delivered in October, November, or December 
D)  None of the above 
A)  A 15% tariff on the value of a shipment of t-shirts 
B)  A $10 tariff on each barrel of petroleum 
C)  A 20% discount on the value of peaches delivered in October, November, or December 
D)  None of the above

Question 14

Which of the following may not be a reliable criterion for determining whether import and domestic goods are "like products"?

Accepted Answer

A)  Consumers' tastes and habits 
B)  The product's end uses 
C)  The product's uniform tariff classification 
D)  All of the above 
A)  Consumers' tastes and habits 
B)  The product's end uses 
C)  The product's uniform tariff classification 
D)  All of the above

Question 15

Each nation has the right to impose import schemes and customs procedures as a means to protect its citizen's public health, safety, and morals.

Accepted Answer

A) True 
 B)False

Question 16

A tariff is:

Accepted Answer

A)  an import duty. 
B)  a tax levied on goods being brought into a country. 
C)  a ban on trade with a foreign nation. 
D)  both A and B. 
A)  an import duty. 
B)  a tax levied on goods being brought into a country. 
C)  a ban on trade with a foreign nation. 
D)  both A and B.

Question 17

Normal trade relations provides that a nation cannot negotiate a preferential trade agreement with another nation.

Accepted Answer

A) True 
 B)False

Question 18

The General Agreement on Tariffs and Trade is today the most important instrument for regulating international trade.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are basic principles of GATT except :

Accepted Answer

A)  commitment to normal trade relations. 
B)  elimination of import quotas. 
C)  non-reciprocal tariff increases. 
D)  non-discrimination against imported goods. 
A)  commitment to normal trade relations. 
B)  elimination of import quotas. 
C)  non-reciprocal tariff increases. 
D)  non-discrimination against imported goods.

Question 20

The WTO is overseen by the Ministerial Conference, which is made up of:

Accepted Answer

A)  the presidents, prime ministers, and royalty from all WTO member nations. 
B)  high-ranking representatives from all WTO member nations. 
C)  high-ranking representatives from a select group of wealthy WTO member nations. 
D)  five representatives from each of the WTO member nations. 
A)  the presidents, prime ministers, and royalty from all WTO member nations. 
B)  high-ranking representatives from all WTO member nations. 
C)  high-ranking representatives from a select group of wealthy WTO member nations. 
D)  five representatives from each of the WTO member nations.

Exam 9: The World Trade Organization: Basic Principles

What are the similarities and differences between the GATT and WTO dispute resolution procedures?

Assess the relative value of a reported U.S. appellate (or trial) decision and a WTO panel report in a trade dispute.

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.

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

When import regulations are readily available to importers and exporters, they are considered to be transparent.

The phrase to describe when a foreign government's import regulations are not made readily available to the public or are hidden or disguised in bureaucratic rules or practices is:

Tariffication is the process in which quotes, licensing schemes, and other nontariff barriers to trade are "converted" to tariffs.

Tariff concessions under GATT are recorded in tariff schedules, which are detailed product-by-product listings of all tariff obligations for that nation.

An embargo only applies to imports from Cuba, Sudan, North Korea, and Egypt.

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

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

Countries A and B both produce coffee. Both countries belong to GATT. Country A imports coffee from B. Once B's coffee enters A's stream of commerce, under the national treatment provisions of GATT:

Which of the following is an example of a specific or flat tariff?

Which of the following may not be a reliable criterion for determining whether import and domestic goods are "like products"?

Each nation has the right to impose import schemes and customs procedures as a means to protect its citizen's public health, safety, and morals.

A tariff is:

Normal trade relations provides that a nation cannot negotiate a preferential trade agreement with another nation.

The General Agreement on Tariffs and Trade is today the most important instrument for regulating international trade.

All of the following are basic principles of GATT except :

The WTO is overseen by the Ministerial Conference, which is made up of:

Introduction to International Business

International Law and the Worlds Legal Systems

Resolving International Commercial Disputes

The Formation and Performance of Contracts for the Sale of Goods

The Documentary Sale and Terms of Trade

Legal Issues in International Transportation

Bank Collections and Letters of Credit

National Lawmaking Powers and the Regulation of Us Trade

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports, Customs, and Tariff Law

Regulating Exports

North American Free Trade Law

The European Union

International Marketing and Consumer Law

Protecting and Licensing Intellectual Property

The Legal Environment of Foreign Direct Investment

Employment and Immigration Law

Environmental Law

Regulating the Competitive Environment

Filters