Country X has violated its WTO obligations. How would the WTO handle the problem?
What will be an ideal response?
A country failing to live up to the agreement may have a complaint filed against it. If a WTO panel finds the country in violation of the rules, the panel will likely ask the country to eliminate the trade barrier. If the country refuses, the WTO will allow the complaining country to impose trade barriers on the offending country equal to the damage caused by the trade barrier. The offending country is not allowed to counterretaliate by imposing new trade barriers against the complainant.
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