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 an 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?

Question

Quizplus · Accepted Answer

The principle of national treatment, which is a core principle of the World Trade Organization, prohibits discrimination between imported and domestic goods. This means that if the U.S. were to impose a tax on foreign-made televisions, it would also have to apply the tax equally to domestic-made televisions. This is known as the national treatment principle, and it is designed to ensure that foreign goods are not unfairly disadvantaged in domestic markets. Therefore, option C is correct. Option A is incorrect because sovereignty does not override international trade laws. Option B is incorrect because the loss of American jobs does not justify breaking international trade laws. Option D is incorrect because there is no such thing as the Uniform Trade Initiative.

Senator Smith Is Tired of All the Imports of Televisions