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Revolta, Tremonta, Griswaldia and Olympia are all WTO Members. Revolta and Olympia are developed countries. Tremonta and Griswaldia are developing countries. Revolta, Griswaldia and Olympia
Revolta, Tremonta, Griswaldia and Olympia are all WTO Members. Revolta and Olympia are developed countries. Tremonta and Griswaldia are developing countries. Revolta, Griswaldia and Olympia have entered into a preferential trade agreement (PTA). The PTA has been notified to the WTO as an Enabling Clause Article 2 (c) agreement. Under the agreement, Revolta, Griswaldia and Olympia have agreed to apply a 0% rate of duty on the following products when imported from each other's territory: grapes, apples, cinnamon and flour. All other products will continue to pay the MFN rate applied by each state. In total, there are over 1000 products which are traded between the three countries. Tremonta is a major exporter of grapes and flour to all three countries. Revolta apples a rate of 40% to grapes and a rate of 20% to flour. Griswaldia maintains an applied rate of 20% on grapes and 60% on flour. Olympia applies a rate of 10% on grapes and 90% on flour. Imports of grapes and flour from Tremonta are subject to these tariffs in each of the three countries. You are required to carefully analyze this scenario and advise Tremonta whether the arrangements which have been implemented by the other three countries is consistent with the WTO rules. In your answer you must: Correctly identify the WTO rules which are in issue Explain the WTO rules Apply the WTO rules to the fact given Present a clear and well-developed assessment of all relevant issues raised in the
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