Senator Rodriguez is tired of all the imports of televisions coming into this country.The senator proposes a bill by which all foreign-made televisions will be taxed an additional $100 before being allowed into the country.Senator Rodriguez receives a great deal of support for this bill,but one senator questions whether such an arrangement is illegal because it will discriminate against imported goods.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Under the principle of national treatment, which is a guiding principle of the World Trade Organization, member nations cannot discriminate against imported goods or apply taxes unequally to them. In order to impose such a tax, it would need to also be applied equally to domestic products. Option A is incorrect because being a sovereign nation does not automatically give the United States the right to violate international trade agreements. Option B is incorrect because the loss of jobs due to imports is not directly relevant to the issue of discrimination. Option D is incorrect because there is no such thing as the Uniform Trade Initiative.

Senator Rodriguez Is Tired of All the Imports of Televisions