Question 8(10 points)

The Chinese government extends tax credits to Chinese compressor manufacturers on the basis of the volume of their compressor sales in the United States.The United States Trade Representative has requested your advice on whether that conduct by the Chinese government is legal (permissible) pursuant toGATT/WTO. Which of the following is your best response:

Question 8 options:

The conduct is permissible because GATT/WTO favors export subsidies.

The conduct is impermissible because GATT/WTO prohibits export subsidies.

Question 9(10 points)

Solar panels are manufactured in New Zealand. The panels are then shipped to Brazil where they are substantially transformed before being imported into the United States for resale. For the purposes of imposing import duties under U.S. law, the goods will be considered a product of New Zealand.

Question 9 options:

True

False