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When a Nation That Belongs to WTO Imposes a Tariff

Question 25

Multiple Choice

When a nation that belongs to WTO imposes a tariff or quota on imported products, it is supposed to do so within the guidelines established by GATT. If it does not do so within GATT's guidelines:


A) the offending nation may suffer military retaliation by the other GATT members.
B) the offending nation may be subject to a proceeding pursuant to the WTO's Dispute Settlement Understanding.
C) the offending nation may end up in the World Court being sued for breach of its GATT contract.
D) none of the above.

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