In what way can the World Trade Organization (WTO) penalize member countries that are found to be engaged in unfair trade practices?
A)the WTO can impose sanctions on the transgressor
B)the WTO can bring the employees of offending companies to court
C)the WTO can restrict the membership of the offending country in other world organizations such as the United Nations
D)the WTO panel can issue a ruling instructing a member state to change trade policies that violate GATT regulations, and if the policies are not changed, allow other states to impose sanctions
E)expel the violating country from the WTO, which means that companies from that country will be charged higher tariffs on their exports

Question

Quizplus · Accepted Answer

The WTO panel can issue a ruling instructing a member state to change trade policies that violate GATT regulations, and if the policies are not changed, allow other states to impose sanctions. This is the primary means by which the WTO penalizes member countries for engaging in unfair trade practices. The other options are either not feasible or not within the scope of the WTO's authority.

In What Way Can the World Trade Organization (WTO) Penalize