Verbal Question of the Day: 23
CR- Summary Question
Q. Dispute settlements take years to do, during which non-compliant tariffs and retaliatory action prevail. China has been gaming the system to impose tariffs that it knows will eventually be ruled out of court after a couple of years, but it gains from them in the interim. Besides, a country that files a successful trade complaint only earns the right to impose penal tariffs on the offending country. In a fast-moving scenario where retaliatory tariffs have already been imposed, dispute settlement as the WTO understands it loses meaning.
Which of the following best summarizes the paragraph given above?
A. WTO’s dispute settlement mechanism is a time-consuming process and awards ineffectual penalties.
B. WTO’s time-consuming dispute settlement system has become inconsequential in today’s dynamic environment, where retaliatory tariffs are already imposed.
C. Countries like China are taking unfair advantage of WTO’s lenient dispute settlement mechanism.
D. WTO’s dispute settlement mechanism has done nothing to ameliorate the international trade issues caused by retaliatory tariffs.