Newlandia, Oldlandia, and Midlandia are WTO Members. Victorialand is currently in negotiations to become a WTO member and it is expected that these negotiations will be successfully concluded by the end of 2019. Newlandia is located in the Caribbean and Oldlandia and Victorialand are coastal states.Midlandia is a European country located in the Alps mountain range.

The following trade related development has taken place:

1.In Newlandia's WTO schedule, Newlandia has scheduled a bound rate of 30% on watches but now maintains an applied rate of 10%.Earlier this year, Newlandia concluded an agreement with Victorialand and pursuant to this agreement, Newlandia has imposed a tariff of 5% on watches imported from Victorialand. Watches from Oldlandia and Midlandia are charged a tariff of 10%.

Using WTO rules and case law (where appropriate), you are required to assess thistrade development and explain whether it is consistent with WTO law.