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The Extraordinary Challenge Committee under NAFTA is intended to function as an appeal body because it is no longer possible to appeal decisions of competent

  1. The Extraordinary Challenge Committee under NAFTA is intended to function as an appeal body because it is no longer possible to appeal decisions of competent investigating bodies to domestic appeal courts.
  2. Under NAFTA, an Extraordinary Challenge Committee is composed of five persons chosen from the member countries' roster of trade law experts.
  3. CUSMA does not retain the cultural industries exception contained in NAFTA.
  4. Under NAFTA, Canada has relinquished its right to have all significant energy contracts reviewed by the National Energy Board.
  5. The investor-state dispute resolution provisions found in Chapter 11 of NAFTA are available only to the governments of member countries, in accordance with the traditions of international law.
  6. CUSMA eliminates a separate energy chapter; provisions related to energy are spread throughout the agreement and attached by way of a separate enforceable bilateral US-Canada side letter on energy regulation and regulatory transparency, which does not apply to Mexico.
  7. Canada and the United States agreed to maintain access to each other's procurement markets via the WTO Agreement on Government Procurement (GPA) rather than adopt new obligations under CUSMA.
  8. CUSMA's intellectual property provisions are unique to the agreement and are not in line with other international intellectual property treaties.
  9. Under customary international law, states are allowed to expropriate foreign investment as long as it is done on a non-discriminatory basis and it is for a public purpose, under due process of law, and with compensation.
  10. CUSMA's environmental chapter is a significant improvement from the NAFTA side agreement as it references both climate change and the Paris Agreement.
  11. Which of the following statements is correct?
    1. NAFTA is well on its way to becoming a customs union due to recent progress in areas of border controls, immigration, and common commercial policy.
    2. Intellectual property provisions were included in NAFTA and the Canada-US Free Trade Agreement due to the growing awareness of the importance of intellectual property protection.
    3. Under the energy provisions of NAFTA, Canada has retained its right to have all significant energy contracts (including those with US or Mexican purchasers) reviewed by the National Energy Board to ensure that the terms are in the national interest.
    4. Both (b) and (c) are correct.
  12. Which of the following statements is correct?
    1. Member countries of NAFTA remain free to favour their own domestic providers of good and services.
    2. Member countries of NAFTA are committed to give providers of goods and services from other NAFTA countries treatment no less favourable than that extended to domestic providers.
    3. Businesspersons now have complete freedom to choose where to live and conduct business in the three member countries of NAFTA.
    4. None of the above is correct.
  13. Which of the following statements is correct?
    1. In order to qualify for area treatment under NAFTA, goods must be wholly obtained or produced entirely in North America.
    2. Area treatment provides that qualifying goods will pass tariff-free or with a reduced tariff from the territory of one member country into another.
    3. Goods manufactured in a non-member country that are imported into Canada and repackaged will qualify for area treatment when they are shipped into the US or Mexico.
    4. None of the above is correct.
  14. Which of the following statements is correct?
    1. The basis for tariff classification under NAFTA is the Harmonized Commodity Description and Coding System (HS); this system has been adopted by most of the world's major trading countries.
    2. It is no longer necessary to produce a certificate of origin when moving goods internally within NAFTA across its two internal borders
    3. Since a certificate of origin is the responsibility of the exporter, the importer need not be concerned about the form or content of the certificate.
    4. All of the above are correct.
  15. Which of the following statements is correct?
    1. The cultural protection provisions of NAFTA have been imported from the CFTA
    2. Canada's object in insisting on a cultural exception was to prevent US culture from entering Canada.
    3. Under NAFTA, Canada may take action to protect its cultural industries but such action may be subject to retaliation by the other member countries.
    4. All of the above are correct.
  16. Which of the following statements is correct?
    1. The Chapter 20 provisions for general dispute resolution are available only to the national governments of the NAFTA countries.
    2. Individual businesses or industries can bring complaints under Chapter 20 of NAFTA if their investments or enterprises have been adversely affected by the actions of member country governments.
    3. The decisions of arbitral panels under NAFTA Chapter 20 are binding on the parties.
    4. None of the above is correct.
  17. Which of the following statements is correct?
    1. Under Chapter 19 of NAFTA the member countries agreed to replace judicial review of final AD and CVD duty determination with binational panel review.
    2. Under Chapter 19 of NAFTA the member countries agreed to replace judicial review of final AD and CVD duty determination with a decision of the competent investigating authority of each country.
    3. NAFTA Chapter 19 Panels may only determine whether a final AD or CVD decision is in accordance with the AD or CVD law of the exporting party.
    4. There is an automatic right of appeal of decisions of Chapter 19 panels through the ECC (Extraordinary Challenge Committee) procedure.
  18. Which of the following statements is correct?
    1. The Extraordinary Challenge Committee has been established under NAFTA to provide a final decision on a Chapter 19 dispute.
    2. The Extraordinary Challenge Committee has been established under NAFTA to provide protection to the parties in unusual cases of Panel failure such as gross misconduct, bias, or a decision that exceeds the jurisdiction of the Panel.
    3. The Extraordinary Challenge Committee has been established under NAFTA to provide appellate recourse in cases where a case has been wrongly decided by a panel.
    4. All of the above are correct.
  19. Which of the following statements is not correct?
    1. Chapter 11 of NAFTA provides for national treatment, minimum standard of treatment, freedom from performance requirements and protection against expropriation without compensation for NAFTA investors from other member countries.
    2. The obligation under NAFTA to treat investors in accordance with international legal concepts of minimum acceptable treatment extends beyond acts of expropriation to "acts tantamount to expropriation".
    3. Parties bringing a case under Chapter 11 of NAFTA may choose between bringing the case to a binational panel of arbitration under ICSID or UNCITRAL rules.
    4. A foreign investor wishing to bring a Chapter 11 action under NAFTA must first persuade its government to take the case against the foreign government on the investor's behalf.
  20. Which of the following statements is correct?
    1. Canada has agreed under the NAFTA Side Agreements on Labour and the Environment to be subject to contingency action if it is established that Canada has not abided by its own rules on Labour and the Environment.
    2. Under the Side Agreements on Labour and the Environment, the three NAFTA countries have established common rules to protect working people and the environment.
    3. If Canada is a guilty party under either the Labour or Environmental Side Agreement, any monetary assessment ordered by the Arbitral Panel will be enforced by Canadian authorities in Canada like any other court judgement.
    4. All of the above are correct.
  21. Which of the following statements is correct?
    1. It is now possible under NAFTA for a professional service provider to provide legal, medical, accounting or architectural services in any member country provided they comply with the rules of their home country.
    2. The various professional committees of the NAFTA countries have now established common standards for professional accreditation.
    3. Under NAFTA, we now have a common market for freedom of movement of labour, meaning that citizens of the three countries can move freely and seek employment in the other member countries.
    4. None of the above is correct.
  22. Which of the following statements is correct?
    1. The obligation of national treatment contained in NAFTA is equivalent to the concept of national treatment contained in the obligations of the GATT.
    2. Under Chapter 11 of NAFTA a private investor has the right to bring a complaint against the government of a member country if that government has taken a measure tantamount to nationalization or expropriation without payment of compensation.
    3. Each member country of NAFTA has reserved the right to make rules which may interfere with trade, provided that the restriction is for the genuine protection of human, animal or plant life or health or the environment.
    4. All of the above are correct.
  23. Which of the following statements is correct?
    1. NAFTA Rules of Origin determine which goods will qualify for tariff-free treatment.
    2. NAFTA Rules of Origin affect the tariff that will be applied to the good.
    3. NAFTA Rules of Origin were simplified from the Rules of Origin that existed under the FTA.
    4. Both (a) and (b) are correct.
  24. Which of the following statements is correct?
    1. NAFTA rules on technical barriers to trade require that states may not impose standards that are more stringent than international standards.
    2. NAFTA rules on technical barriers to trade incorporate the provisions of MFN and national treatment.
    3. NAFTA rules on technical barriers to trade are approved by the Committee on Standards-Related Measures
    4. All of the above are correct.
  25. Which of the following statements is correct?
    1. NAFTA sets common standards for sanitary and phytosanitary measures among member states.
    2. NAFTA standards on sanitary and phytosanitary measures must be adopted for scientific reasons.
    3. NAFTA standards on sanitary and phytosanitary measures may only be used to protect humans and animals from pests, diseases or contaminants.
    4. None of the above is correct.

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