True / False
1. The GATT dispute panel found that Thailand‘s import restrictions on Tobacco could not be justified as being
necessary for the protection of domestic agriculture.
a. True
b. False
2. The WTO Agreement on Agriculture is designed to increase export opportunities for agricultural products and to
reduce government subsidies.
a. True
b. False
3. Trade-related investment measures are those restrictions a nation places or foreign investment that adversely affect
trade in goods or services.
a. True
b. False
4. A product standard is a technical requirement imposed by the Department of Commerce’s technical bureau as to the
product’s characteristics before permitted into the country.
a. True
b. False
5. The Flammable Fabrics Act is an example of a technical regulation that is in violation of the principles of
GATT/WTO.
a. True
b. False
6. Trade discrimination can occur even when imported and domestic products are treated the same.
a. True
b. False
7. After many years of work by the European Union Commission, most European countries have agreed on similar
standards for consumer products.
a. True
b. False
8. The GATT Agreement on Technical Barriers to Trade governs the use of technical regulations, product standards,
testing, and certifications among WTO member countries.
a. True
b. False
9. The principle of least-restrictive trade means that otherwise valid restrictions on trade can be no more restrictive
than necessary to achieve the goals for which they were imposed.
a. True
b. False
10. The GATT dispute panel found that Thailand‘s regulations on the importation of cigarettes was justified.
a. True
b. False
11. Under GATT, an exception from the national treatment provision is granted to allow governments to favor domestic
suppliers.
a. True
b. False
12. The Agreement on Government Procurement has the force of international law and applies to all WTO countries.
a. True
b. False
13. The Agreement on Government Procurement reverses the general GATT rules that allow government agencies to
favor domestic products.
a. True
b. False
14. Agricultural products, in general, have few barriers to trade placed upon them.
a. True
b. False
15. In 1947, the international community created the 1947 GATT and incorporated into the context of the principles is
the protection of intellectual property to encourage innovation and protection.
a. True
b. False
16. Trade retaliation under U.S. Section 301 is mandatory if the U.S. trade representative determines a country permits
forced labor.
a. True
b. False
17. Super 301 was created by Congress as a fast track measure to be used against countries that fail to protect U.S.
intellectual property rights.
a. True
b. False
18. The symbol of an approved product in Japan is the government-authorized Japan Industrial Standards Mark.
a. True
b. False
19. ISO 9000 is a series of rules governing the importation of technology products from a WTO-member nation.
a. True
b. False
20. The GATT 1994 Agreement on Import Licensing Procedures provides strict guidelines for licensing paperwork.
Licenses can be refused if any of the procedures are not strictly followed.
a. True
b. False
21. Section 301 of the Trade Act of 1974 permits the United States to unilaterally retaliate against foreign companies
that discriminate against U.S. goods or services.
a. True
b. False
22. The GATT Agreement on Technical Barriers to Trade sets minimum international standards for product
performance, design, safety, or efficiency.
a. True
b. False
23. The WTO General Agreement on Trade in Services applies basic GATT Principles to service industries.
a. True
b. False
24. Only U.S. and Canadian manufacturers may submit their products to independent laboratories for testing in order to
attach the CE mark before admitted into the EU.
a. True
b. False
25. The Japanese technical barriers are imposed to protect its citizens and based on performance standards.
a. True
b. False
26. The United States Buy American Act is in violation of the principles of GATT/WTO.
a. True
b. False
27. Domestic agriculture support programs are politically charged issues that are obstacles to achieving the principles of
GATT/WTO.
a. True
b. False
28. Under the Recognition of Licensing and Professional Qualifications, countries must recognize professional licenses
granted by foreign countries.
a. True
b. False
29. Restrictions a nation places on foreign investment that adversely affect trade in goods or services are called:
a. Trade restrictions.
b. Trade-related investment measures.
c. Tariffs.
d. Foreign interest restrictions.
30. Intellectual property rights do not include:
31. Which of the following statements regarding the 1994 Agreement on Technical Barriers to Trade is false?
a. All technical regulations shall be applied on a nondiscriminatory basis, without regard to the national origin of
the products.
b. Disputes between countries may be referred to the WTO for negotiation and settlement.
c. Whenever possible, product requirements should be based on the design and descriptive characteristics of a
product, rather that its performance.
d. Proposed standards must be published and made available to foreign countries.
e. All of the above are true.
32. ISO 9000 refers to:
a. Standards used for assuring product quality through product design and manufacturing process.
b. A series of import regulations imposed by the European Union.
c. Japanese trade restrictions against U.S. telecommunications companies that were eventually repealed.
d. A trade agreement established between the U.S. and the European Union that will significantly reduce
barriers to trade.
33. Regarding Thailand’s importation of cigarettes:
a. It was found that cigarettes made in the U.S. could not meet Thailand’s standards.
b. Thailand’s licensing system for cigarettes was not justified.
c. Thailand’s licensing system for cigarettes was needed to protect its domestic industries.
d. The U.S. was not allowing Thailand to import enough U.S. cigarettes to meet demand.
34. Which of the following statements regarding the 1994 Agreement on Import Licensing Procedures is false?
a. Applications should not be refused because of minor errors in paperwork.
b. The WTO Import Licensing Committee must be notified if any new products will become subject to licensing
requirements.
c. It calls for the procedures to be fair, reasonable, and nondiscriminatory.
d. Where licenses are used to administer quotas, the amount of the quota already used must be published for all
importers to see.
e. All of the above are correct.
35. The WTO Agreement on Government Procurement (1994):
a. Requires fair, open, and nondiscriminatory procurement practices.
b. Sets up uniform procurement procedures to protect suppliers from different countries.
c. Applies only to those countries who have signed it.
d. Applies to the purchase of goods and services over $182,000.
e. All of the above.
36. Which of the following is not an instance in which the U.S. Trade Representative may take retaliatory action against
a foreign country?
a. The foreign country’s policies violate the legal rights of the U.S. and restrict U.S. commerce.
b. The foreign government permits forced labor.
c. The foreign government’s policies are unreasonable or discriminatory and burden or restrict U.S. trade or
foreign investment.
d. None of the above is discretionary, rather, retaliation by the U.S. Trade Representative is mandatory in all
three instances.
37. ISO 14000 refers to:
a. Standards used for assuring product quality through design and manufacturing process.
b. Guidelines in environmental management and labeling.
c. European Union import regulations.
d. A trade agreement between the U.S. and EU designed to reduce barriers to trade.
38. A law or regulation affecting a product’s characteristics that must be met before a product can enter a country is a:
a. Product standard.
b. Technical regulation.
c. Product limitation.
d. Government procurement law.
39. In the United States, technical regulations and product standards can be set by:
a. The Department of Agriculture.
b. The Consumer Product Safety Commission.
c. The Food and Drug Administration.
d. The Department of Transportation.
e. All of the above.
40. Which of the following statements regarding technical barriers to trade is false?
a. Despite decades of work by the European Union, thousands of new national standards have arisen.
b. Japan and the United States have had a long history of disputes over Japanese technical barriers to trade.
c. Most standard setting in the European Union takes place through the European Committee for
Standardization.
d. Japanese technical regulations and standards are readily available to importers and exporters.
e. All of the above are true.
41. The majority of the gross domestic product in the U.S. is produced by:
a. Service industries.
b. Manufacturing industries.
c. Trade in services.
d. Technology industries.
42. Thailand‘s import restrictions on cigarettes:
a. Were justified under GATT article XI as protection of domestic agriculture.
b. Were justified in the interest of public health.
c. Were not justified under GATT article XI as protection of domestic agriculture.
d. Were not justified because they violated the principle of free trade.
43. Section 301 refers to:
a. A law that permits the United States to retaliate unilaterally against other countries that violate GATT.
b. A law that permits the United States to retaliate unilaterally against countries that are unfair in restricting the
import of U.S. goods or services.
c. A law that contains four different provisions.
d. A law that is based on the Omnibus Trade and Competitiveness Act of 1988.
e. All the above are true regarding Section 301.
44. Under Section 301, the United States Trade Representative has the discretion to take retaliatory trade action in all
the following cases except:
a. When a country permits forced labor.
b. When a country fails to allow workers the right to organize and bargain collectively.
c. When a country has denied the U.S. its rights under any of the GATT agreements.
d. When a country fails to provide standards for minimum wage.
45. The principle that limits restrictions on trade to the lowest level possible to achieve the goals for which they are
imposed is:
a. Trade barrier limitation principle.
b. Fair trade principle.
c. Principle of least-restrictive trade.
d. Principle of nominal trade barriers.
46. The first multilateral, legally enforceable agreement to establish rules for international trade in services was:
a. The General Agreement on Trade in Services of 1994.
b. Trade in Services Act of 1947.
c. The Multilateral Agreement on Trade in Services of 1994.
d. The General Agreement on Trade in Services of 1947.
47. Which of the following statements is true regarding trade in agriculture?
a. The United States exports almost 50 percent of its agricultural production.
b. In general, governments let agricultural markets operate on the free trade principle.
c. Nations do not mind being reliant on other countries for their food supply.
d. Most countries impose strict restrictions on both raw and processed food products.
48. Aeroflop, a U.S. firm, wants to sell several million dollars worth of airplanes to a government-owned airline in a
European country famous for cheese. In order to get the contract, Aeroflop agrees to pay a 5% kickback to another
U.S. company if that company agrees to buy all of its cheese from a seller in that European country.
a. Aeroflop‘s sale to the government-owned airlines is allowed under the Agreement on Government
Procurement.
b. Aeroflop’s sale is prohibited because the Agreement on Government Procurement prohibits offsets.
c. Aeroflop‘s sale is allowable because the European nation is treating Aeroflop no less favorably than its
nationals.
d. The WTO dispute resolution panel must authorize both contracts prior to the sale.
49. Which of the following statements about the 1994 General Agreement on Trade in Services is false?
a. It is patterned after the concepts that GATT applies to trade in goods.
b. Expands provisions governing trade in services provided for in the original GATT agreement.
c. Prohibits a requirement that local inventors must own a percentage of a foreign services company.
d. Allows each country to list exceptions to the General Agreement for certain service industries.
50. In EU Measures Concerning Meat and Meat Products, the WTO Dispute Resolution Panel decided:
a. The EC’s regulation permitting zero residue violates the SPS agreement because internationally accepted
standards permit residue.
b. Where no internationally accepted standards exist, the EC ban on that hormone was not allowed because it
was not based on a risk assessment using scientifically accepted principals.
c. The decision of the Dispute Resolution Body was overturned by the WTO Appellate Body in January of 1998.
d. Both A and B are true.
51.
a.
b.
c.
d.
52. Countries must rely on internationally accepted standards or recommendations for the protection of their plants,
animals, and foodstuffs.
a. Japan’s keiretsu
b. Agricultural Act of 1948
c. The Law on the Entry and Exit Animal and Plant Quarantine
d. Codex Alimentarius
53. The WTO General Agreement on Trade in Services defines international services as
a. International telephone calls
b. Consumption abroad
c. U.S. Immigration officials
d. Both a and b.
54. Compare and contrast some of the remedies and sanctions under Section 301.
55. Consider the benefits and detriments of bringing an IPR dispute before the WTO and the USTR.
56. Compare and contrast the IPR-related/access dispute resolution procedures of GATT with those of WTO.
57. Compare and contrast the actions of foreign countries regarding cigarettes (as seen in the text) with recent attempts
within the U.S. to regulate cigarettes.
58. Consider the similarities and differences between situations in which the U.S. Trade Act of 1974 can be used instead
of the WTO dispute settlement procedures.
59. Compare and contrast unilateralism with bilateralism.
60. Craft a statutory addendum deeming what constitutes a valid, non-discriminatory “health regulation.” Students might
wish to review GATT Article XX(b)‘s to “protect human health” language.
61. Considering the problems with “mad cow” disease in the U.K. (and, perhaps, adjacent countries), write a regulation
pertaining to the import of European beef.