Deck 10: Laws Governing Access to Foreign Markets

Question 1

The Agreement on Government Procurement applies to all WTO countries.

Answer 1

False

Question 2

Trade retaliation is mandatory if the U.S.trade representative determines a country permits forced labor.

Answer 2

False

Question 3

The largest purchaser of U.S.agricultural products is Russia.

Answer 3

False

Question 4

The GATT Agreement on Technical Barriers to Trade governs the use of technical regulations,product standards,testing,and certifications among WTO member countries.

Question 5

The Flammable Fabrics Act is an example of a technical regulation.

Question 6

The WTO Report European Communities-Measures Affecting Asbestos and Asbestos-Containing Products was about a country's right to pass laws protecting the public safety under GATT.

Question 7

Intellectual property rights were protected under the 1947 GATT.

Question 8

The Agreement on Government Procurement reverses the general GATT rules that allow government agencies to favor domestic products.

Question 9

Special 301 is used against countries that fail to protect U.S.intellectual property rights.

Question 10

The principle of least-restrictive trade means that otherwise valid restrictions on trade can be no more restrictive than necessary to achieve the goals for which they were imposed.

Question 11

After many years of work by the European Union Commission,most European countries have agreed on similar standards for consumer products.

Question 12

The GATT dispute panel found that Thailand's import restrictions on Tobacco could not be justified as being necessary for the protection of domestic agriculture.

Question 13

The GATT dispute panel found that Thailand's regulations on the importation of cigarettes was justified.

Question 14

Trade discrimination can occur even when imported and domestic products are treated the same.

Question 15

Under GATT,an exception from the national treatment provision is granted to allow governments to favor domestic suppliers.

Question 16

Trade-related investment measures are those restrictions a nation places or foreign investment that adversely affect trade in goods or services.

Question 17

The United States announced it would not impose sanctions on Japan after the U.S.and Japan reached an agreement intended to give U.S.telecommunication firms equal access to the Tokyo cellular phone market.

Question 18

Agricultural products,in general,have few barriers to trade placed upon them.

Question 19

A product standard is a law or regulation affecting a product's characteristics that must be met before a product can be sold in a country.

Question 20

The GATT Agreement on Agriculture is expected to increase export opportunities for agricultural products and to reduce government subsidies.

Question 21

Which of the following is not an instance in which the U.S.Trade Representative may take retaliatory action against a foreign country?

A) The foreign country's policies violate the legal rights of the U.S. and restrict U.S. commerce.
B) The foreign government permits forced labor.
C) The foreign government's policies are unreasonable or discriminatory and burden or restrict U.S. trade or foreign investment.
D) None of the above is discretionary, rather, retaliation by the U.S. Trade Representative is mandatory in all three instances.

Question 22

The GATT 1994 Agreement on Government Procurement:

A) Requires fair, open, and nondiscriminatory procurement practices.
B) Sets up uniform procurement procedures to protect suppliers from different countries.
C) Applies only to those countries who have signed it.
D) Applies to the purchase of goods and services over $182,000.
E) All of the above.

Question 23

A law or regulation affecting a product's characteristics that must be met before a product can enter a country is a:

A) Product standard.
B) Technical regulation.
C) Product limitation.
D) Government procurement law.

Question 24

Restrictions a nation places on foreign investment that adversely affect trade in goods or services are called:

A) Trade restrictions.
B) Trade-related investment measures.
C) Tariffs.
D) Foreign interest restrictions.

Question 25

The General Agreement of Trade in Services applies basic GATT Principles to service industries.

Question 26

Which of the following statements regarding the 1994 Agreement on Technical Barriers to Trade is false?

A) All technical regulations shall be applied on a nondiscriminatory basis, without regard to the national origin of the products.
B) Disputes between countries may be referred to the WTO for negotiation and settlement.
C) Whenever possible, product requirements should be based on the design and descriptive characteristics of a product, rather that its performance.
D) Proposed standards must be published and made available to foreign countries.
E) All of the above are true.

Question 27

The symbol of an approved product in Japan is the government-authorized Japan Industrial Standards Mark.

Question 28

The GATT 1994 Agreement on Import Licensing Procedures provides strict guidelines for licensing paperwork.Licenses can be refused if any of the procedures are not strictly followed.

Question 29

Section 301 of the Trade Act of 1974 permits the United States to unilaterally retaliate against foreign companies that discriminate against U.S.goods or services.

Question 30

Manufacturers outside the EU may submit their products to independent laboratories for testing in order to attach the CE mark.

Question 31

The agreement that put an end to the MFA quota system,improved access to foreign markets,and liberalized world trade in textiles was the:

A) 1974 Multifiber Arrangement.
B) GATT Trade in Textiles Act of 1947.
C) GATT Agreement on Textiles and Clothing.
D) GATT Trade in Textiles Act of 1994.

Question 32

ISO 9000 is a series of rules governing the importation of technology products from a WTO-member nation.

Question 33

Which of the following statements regarding the 1994 Agreement on Import Licensing Procedures is false?

A) Applications should not be refused because of minor errors in paperwork.
B) The WTO Import Licensing Committee must be notified if any new products will become subject to licensing requirements.
C) It calls for the procedures to be fair, reasonable, and nondiscriminatory.
D) Where licenses are used to administer quotas, the amount of the quota already used must be published for all importers to see.
E) All of the above are correct.

Question 34

In the United States,technical regulations and product standards can be set by:

A) The Department of Agriculture.
B) The Consumer Product Safety Commission.
C) The Food and Drug Administration.
D) The Department of Transportation.
E) All of the above.

Question 35

In 1996,Japan promulgated amendments to its copyright law,extending protection to U.S.sound recordings published before 1971 as a result of WTO dispute settlement consultations as to whether the prior law violated the SPS Agreement.

Question 36

Intellectual property rights do not include:

A) Copyrights.
B) Patents.
C) Goods.
D) Trademarks.
E) All of the above are part of intellectual property rights.

Question 37

ISO 14000 refers to:

A) Standards used for assuring product quality through design and manufacturing process.
B) Guidelines in environmental management and labeling.
C) European Union import regulations.
D) A trade agreement between the U.S. and EU designed to reduce barriers to trade.

Question 38

The GATT Agreement on Technical Barriers to Trade sets minimum international standards for product performance,design,safety,or efficiency.

Question 39

ISO 9000 refers to:

A) Standards used for assuring product quality through product design and manufacturing process.
B) A series of import regulations imposed by the European Union.
C) Japanese trade restrictions against U.S. telecommunications companies that were eventually repealed.
D) A trade agreement established between the U.S. and the European Union that will significantly reduce barriers to trade.

Question 40

Regarding Thailand's importation of cigarettes:

A) It was found that cigarettes made in the U.S. could not meet Thailand's standards.
B) Thailand's licensing system for cigarettes was not justified.
C) Thailand's licensing system for cigarettes was needed to protect its domestic industries.
D) The U.S. was not allowing Thailand to import enough U.S. cigarettes to meet demand.

Question 41

Consider the benefits and detriments of bringing an IPR dispute before the WTO and the USTR.

Question 42

Section 301 refers to:

A) A law that permits the United States to retaliate unilaterally against other countries that violate GATT.
B) A law that permits the United States to retaliate unilaterally against countries that are unfair in restricting the import of U.S. goods or services.
C) A law that contains four different provisions.
D) A law that is based on the Omnibus Trade and Competitiveness Act of 1988.
E) All the above are true regarding Section 301.

Question 43

Aeroflop,a U.S.firm,wants to sell several million dollars worth of airplanes to a government-owned airline in a European country famous for cheese.In order to get the contract,Aeroflop agrees to pay a 5% kickback to another U.S.company if that company agrees to buy all of its cheese from a seller in that European country.

A) Aeroflop's sale to the government-owned airlines is allowed under the Agreement on Government Procurement.
B) Aeroflop's sale is prohibited because the Agreement on Government Procurement prohibits offsets.
C) Aeroflop's sale is allowable because the European nation is treating Aeroflop no less favorably than its nationals.
D) The WTO dispute resolution panel must authorize both contracts prior to the sale.

Question 44

Thailand's import restrictions on cigarettes:

A) Were justified under GATT article XI as protection of domestic agriculture.
B) Were justified in the interest of public health.
C) Were not justified under GATT article XI as protection of domestic agriculture.
D) Were not justified because they violated the principle of free trade.

Question 45

Which of the following statements is true regarding trade in agriculture?

A) The United States exports almost 50 percent of its agricultural production.
B) In general, governments let agricultural markets operate on the free trade principle.
C) Nations do not mind being reliant on other countries for their food supply.
D) Most countries impose strict restrictions on both raw and processed food products.

Question 46

Which of the following is not a provision of Section 301?

A) Super 301.
B) Telecommunications 301.
C) Technology 301.
D) Special 301.

Question 47

Compare and contrast the IPR-related/access dispute resolution procedures of GATT with those of WTO.

Question 48

Under the GATT 1994 Agreement on Agriculture:

A) Export opportunities for agricultural products are expected to increase.
B) Government subsidies are expected to be reduced.
C) Nontariff barriers will gradually be converted to tariffs.
D) Japan and Korea agreed to open their markets to farm products.
E) All of the above.

Question 49

In what ways are quotas and numerical restrictions similar yet different?

Question 50

The first multilateral,legally enforceable agreement to establish rules for international trade in services was:

A) The General Agreement on Trade in Services of 1994.
B) Trade in Services Act of 1947.
C) The Multilateral Agreement on Trade in Services of 1994.
D) The General Agreement on Trade in Services of 1947.

Question 51

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.

Question 52

In EU Measures Concerning Meat and Meat Products,the WTO Dispute Resolution Panel decided:

A) The EC's regulation permitting zero residue violates the SPS agreement because internationally accepted standards permit residue.
B) Where no internationally accepted standards exist, the EC ban on that hormone was not allowed because it was not based on a risk assessment using scientifically accepted principals.
C) The decision of the Dispute Resolution Body was overturned by the WTO Appellate Body in January of 1998.
D) Both A and B are true.

Question 53

The largest purchaser of U.S.agricultural products is:

A) Germany.
B) Canada.
C) Japan.
D) Russia.

Question 54

The principle that limits restrictions on trade to the lowest level possible to achieve the goals for which they are imposed is:

A) Trade barrier limitation principle.
B) Fair trade principle.
C) Principle of least-restrictive trade.
D) Principle of nominal trade barriers.

Question 55

Compare and contrast some of the remedies and sanctions under Section 301.

Question 56

Under Section 301,the United States Trade Representative has the discretion to take retaliatory trade action in all the following cases except:

A) When a country permits forced labor.
B) When a country fails to allow workers the right to organize and bargain collectively.
C) When a country has denied the U.S. its rights under any of the GATT agreements.
D) When a country fails to provide standards for minimum wage.

Question 57

The majority of the gross domestic product in the U.S.is produced by:

A) Service industries.
B) Manufacturing industries.
C) Trade in services.
D) Technology industries.

Question 58

Which of the following statements regarding technical barriers to trade is false?

A) Despite decades of work by the European Union, thousands of new national standards have arisen.
B) Japan and the United States have had a long history of disputes over Japanese technical barriers to trade.
C) Most standard setting in the European Union takes place through the European Committee for Standardization.
D) Japanese technical regulations and standards are readily available to importers and exporters.
E) All of the above are true.

Question 59

Consider the similarities and differences between situations in which the U.S.Trade Act of 1974 can be used instead of the WTO dispute settlement procedures.

Question 60

Which of the following statements about the 1994 General Agreement on Trade in Services is false?

A) It is patterned after the concepts that GATT applies to trade in goods.
B) Expands provisions governing trade in services provided for in the original GATT agreement.
C) Prohibits a requirement that local inventors must own a percentage of a foreign services company.
D) Allows each country to list exceptions to the General Agreement for certain service industries.

Question 61

Compare and contrast unilateralism with bilateralism.

Question 62

Considering the problems with "mad cow" disease in the U.K.(and,perhaps,adjacent countries),write a regulation pertaining to the import of European beef.

Question 63

Craft a statutory addendum deeming what constitutes a valid,non-discriminatory "health regulation." Students might wish to review GATT Article XX(b)'s to "protect human health" language.