The "escape clause" of the GATT agreement derives its name from the fact that:
A) it allows a country to escape from having trade disputes settled by GATT guidelines.
B) it permits a country to escape from its previously negotiated tariff obligations.
C) it permits a country to be relieved of having to make its balance of payments obligations for a short period of time.
D) none of these are correct.

Question

Quizplus · Accepted Answer

The "escape clause" allows a country to escape from its previously negotiated tariff obligations in the event that imports of a certain product are causing or threaten to cause serious injury to the domestic industry of that country. It is also known as the "safeguard clause" or "emergency clause."

The "Escape Clause" of the GATT Agreement Derives Its Name