Question 1
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?
Yes the bill would violate the American obligations pursuant to the GATT because GATT is that one nation will not take unilateral retaliatory action against another nation in a trade dispute.GATT obligates each country to accord nondiscriminative. No other countries with some exceptions receive better treatment or lower tariffs.
Question 2
Compare and contrast the actions of foreign countries regarding cigarettes (as seen in the text) with recent attempts within the U.S. to regulate cigarettes.
Bulgaria has banned all tobacco advertising outside of tobacco shops and threatened violators with a $50,000 fine per violation. British do not forbid tobacco advertising, they insist on self-imposed and highly subjective industry guidelines. Belgium permits cigarette ads, but only those that focus on the package or on part of its design. A directive by EU that would have effectively banned all advertising of tobacco products was annulled in 2000 by the European Court of Justice, however states within the EU have addressed the advertising of tobacco in their own form. Japan has instituted its own ban on advertising of tobacco products. Japan has