Violation of International Trading Rules against NAIOS States - Assignment Example

The paper discusses what has greatly influenced the level of profits the company receives from retailers in those states. These legislations are not legitimate as regards the GATT/WTO agreements.

            Pell has imposed an increased Value Added Tax Sales (VAT) to 25% on all imported commodities to the country and imposed a 10% VAT on locally produced goods. This does not favor the imported goods as they would have a higher price in the markets compared to the local products, which obviously is unfair competition. The National Treatment Obligation (NTO) largely fights against this and according to the GATT agreement, article III paragraph 4; equal treatment should be given to all goods. This has been violated by Pell therefore Electro Co. can sue Pell in a court of law.

            Imposition of quota by Lamar on imported phones of 5,000 also goes against article IX, paragraph 1, of the GATT agreement that there should be no imposition of quotas on imports and exports of trading partners. Principle of Most Favored Nation (MFN), article I, paragraph 1, of the GATT agreement, the preference to goods from New Aldoina should be granted to all parties to a contract.  The 20% tariff on goods from countries suspected to accommodate terrorists violates UN Charter, Chapter IX and also goes against the non-discrimination principle under WTO/GATT. This can also be used by Electro Co. against Lamar.