If a WTO country is in violation of a trade agreement, it risks:
A) Having its economic policies taken over by the U.N.
B) Having to pay damages.
C) Immediate trade sanctions.
D) Nothing - the WTO has no enforcement power.

Question

Quizplus · Accepted Answer

If a WTO country is in violation of a trade agreement, it risks having to pay damages. The WTO Dispute Settlement Understanding provides a framework for resolving disputes between WTO members, and one of the possible outcomes is the imposition of monetary damages. However, it is important to note that trade sanctions can also be imposed as a consequence of a violation, depending on the severity and nature of the non-compliance.

If a WTO Country Is in Violation of a Trade