Senator Smith is tired of all the imports of televisions coming into this country.He proposes a bill by which all foreign-made televisions will be taxed at additional $100 before being allowed into the country.He receives a great deal of support for his bill,but one senator questions whether such an arrangement is illegal since it will discriminate against imported goods.Which of the following is correct?
A) There is no problem with the additional tax because the U.S.is a sovereign nation.
B) There is no problem with the tax so long as it can be shown that American jobs are being lost due to the number of televisions being imported.
C) Under the principle of national treatment,the U.S.,as a member of the World Trade Organization,may not discriminate against imported goods and may not apply the tax unless it is also applied equally to domestic products.
D) The tax may not be imposed under the Uniform Trade Initiative.
Correct Answer:
Verified
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