[Lambswool Tax] the U

Multiple Choice

[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S.
-Does the lambswool tax violate the principle of normal trade relations, according to Article I of GATT?

A) Yes, because WTO member states must treat like goods coming from other WTO member states on an equal basis.
B) No, because WTO member states need not treat like goods coming from other WTO member states the same.
C) No, because Canada does not have most-favored-nation status.
D) No, because the tax does not violate NAFTA.
E) No, because the U.S. is entitled to tax like goods.