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Keywords:
Gatt,
Tariff,
Punitive,
Imposition,
Punish
Occurs when a person engages in a lawful activity, such as complaining of harassment or cooperating in a harassment investigation, and experiences a negative job action as a direct result of their lawful activity.
Action taken by a country whose exports are adversely affected by the raising of tariffs or other trade restricting measures by another country. The GATT permits an adversely affected contracting party (CP) to impose limited restraints on imports from another CP that has raised its trade barriers (after consultations with countries whose trade might be affected). In theory, the volume of trade affected by such retaliatory measures should approximate the value of trade affected by the precipitating change in import protection.
Punitive action taken to limit imports from a trading partner that has violated or reneged on a trade agreement. The GATT Council may authorize retaliation if the dispute settlement process has been exhausted without success. In principle, the value of trade subjected to retaliation should approximately equal the value of trade affected by the offending action, but there are no accepted guidelines in GATT practice for determining the extent of trade damage suffered by an injured contracting party. Although the threat of retaliation --especially by a major trading country --can have considerable persuasive force, actual imposition offers little economic remedy to the injured party; in some cases it can provoke counter-retaliation (see trade war). US authority for taking retaliatory trade actions is provided by Section 301 of the Trade Act .of 1974, as amended (see Section IV).
The use of an increased trade barrier in response to another country increasing its trade barrier, either as a way of undoing the adverse effects of the latter's action or of punishing it. The formal procedure permitted under the GATT whereby a country may raise discriminatory tariffs above bound levels against a GATT member that has violated GATT rules and not provided compensation.
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