Management thinks that the Japanese government should require distributors to agree to import a given quantity of U.S.-made products in a year’s period. How would the Japanese government mandate this? Do you think the Japanese distribution system or its keiretsu practices can be reformed? What other remedies or sanctions might be appropriate in this case? What is the likelihood that the threat of sanctions by the United States will affect the Japanese position? Given the history of U.S.-Japanese trade relations and the authority of the WTO, what do you think is the likely outcome of this case? Based on your study of the last two chapters, what provisions of the GATT agreement, if any, might apply to this case?
GATT’s Article 24 allow this type of county trading arrangements to be set up as a singular exception, delivered assured undecorated criteria are met. In certain, the provisions should help trade flow more easily among this country in the group without obstacles being elevated on trade with the outside world (Schaffer, Agusti, & Dhooge, 2015). In other words, local integration should accompaniment the mutual trading system and not threatens it.