The GATT Escape Clause

question 27

Multiple Choice

The GATT escape clause:

• A) Allows a country to take temporary corrective action to protect a domestic industry.
• B) Allows members who no longer wish to be a part of the WTO to quit.
• C) Allows a country to impose tariffs on countries that are engaging in dumping.
• D) Allows a country to disaffirm any previous tariffs they have imposed on another GATT member.

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Definitions:

Trade Deficit

A situation that occurs when a country's imports of goods and services exceed its exports.

Merchandise Balance

The difference in value between a country's imports and exports of goods.

Services Balance

The difference between a country's exports and imports of services.

Balance Of Trade

The difference between a country's exports and imports of goods.