The Republic of Garbino Is a Signatory to the General

The Republic of Garbino is a signatory to the General Agreement on Tariffs and Trade and a member of the WTO. Article III:2 of GATT states that a government must accord the same or better tax treatment to imported goods as it does to domestic products. Garbino imposed a tax on imported lumber of 13 cents per board foot while its own lumber is taxed at 5 cents per board foot. Its own lumber industry is small and very inefficient. It exports a variety of manufactured goods to Canada.

A) Since the GATT is only a body of principles, Canada cannot use it to impose countervailing duties on Garbino's exports to Canada.
B) Garbino is obligated to follow the GATT rules on the restrictions it may impose on imports, or suffer countervailing duties being imposed by Canada on Garbino's exports to Canada.
C) Since the purpose of the GATT is to help reduce barriers to international free trade, it is likely that Garbino's actions would breach the spirit of GATT.
D) Garbino is obligated to follow the GATT rules on the restrictions it may impose on imports, or suffer countervailing duties being imposed by Canada on Garbino's exports to Canada and since the GATT is only a body of principles, Canada cannot use it to impose countervailing duties on Garbino's exports to Canada.
E) Since the purpose of the GATT is to help reduce barriers to international free trade, it is likely that Garbino's actions would breach the spirit of GATT and Garbino is obligated to follow the GATT rules on the restrictions it may impose on imports, or suffer countervailing duties being imposed by Canada on Garbino's exports to Canada.