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[Lambswool Tax] the U

Question 64

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[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.
-All of the following are examples of a nontariff barrier except ________.


A) A trade embargo
B) A ban on the sale of lambswool
C) A quota or limit on the amount of imported units
D) A fee based on the weight of the imported units
E) A ban on trade with Canada

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