Countries A and B both produce coffee. Both countries belong to GATT. Country A imports coffee from B. Once B's coffee enters A's stream of commerce, under the national treatment provisions of GATT:
A) country A cannot subject B's coffee to higher internal taxes or charges than its domestic coffee.
B) country A may now charge higher internal taxes or charges on B's coffee in order to discourage coffee drinking since the goods have already passed the border.
C) country A cannot subject B's coffee to any internal taxes or charges, even if it does so to domestic coffee.
D) none of the above is correct.

Question

Quizplus · Accepted Answer

According to the national treatment provisions of GATT, once B's coffee enters A's stream of commerce, country A cannot subject it to higher internal taxes or charges than its domestic coffee. This is to ensure that imported goods are treated equally to domestic goods in order to prevent discrimination against foreign products.

Countries a and B Both Produce Coffee