Canada and Argentina are members of the World Trade Organization (WTO). Argentina has been experiencing economic difficulties recently and halts imports of Canadian goods to save foreign exchange. This violates Argentina's obligations under the WTO Agreement. Canada may not impose trade barriers to Argentine goods in retaliation until the WTO had determined that Argentina is not in compliance with its obligations and grants Canada permission.

Question

Quizplus · Accepted Answer

Under WTO rules, member countries are expected to resolve disputes through the WTO's dispute settlement system. Retaliatory trade measures can only be taken after the WTO has ruled on the matter and authorized such actions.

Canada and Argentina Are Members of the World Trade Organization