An exception to the obligation of conditional suspicion is Article XIII of the WTO/GATT, which allows a Member to deny most-favoured status to a newly acceding country if it notifies the WTO/GATT accordingly. In such a case, the new member is not obliged to extend the most combined treatment to that member. In fact, the United States temporarily invoked Article XIII for the accessions of Mongolia, the Kyrgyz Republic, and Georgia until normal permanent trade relations could be approved by Congress. These are between the countries of a particular area. Among the most powerful, there are some countries that are close to one another in a geographical area.  These countries tend to have similar histories, demographics, and even economic goals. As a result, Uruguay Round negotiators developed the Agreement on Trade-Related Investment Measures (TRIMs), which essentially clarifies Gatt Articles III and XI, including by including a short illustrative list of practices prohibited by these Articles. For example, the TRIMs Agreement is a flagrant violation of the rules if an investor requires it to use domestic products instead of imported products, or if a company restricts the use of imported products to the value of local products exported. However, in the 1970s, some countries – and the United States in particular – were frustrated with the GATT DISPUTE SETTLEMENT MECHANISM. Trade rules did not cover a wide range of non-tariff barriers that countries used to block trade, and the United States faced serious international competition from Europe and Japan. List of agreements between two states, two blocs or one bloc and one state. In the UNITED States, EU Member States and many other countries, dumping as such is not illegal.
However, predatory business practices are subject to competition policy laws, and companies that violate antitrust laws can be ordered to pay considerable fines and also be ordered to cease and desist. However, the WTO has no rules on competition policy. And developing countries were surprised and confused by the last-minute agreement that the new WTO would be a “one-off business.” Suddenly, they committed to a number of agreements that were not previously mandatory and that many developing countries really did not understand, such as customs valuation agreements, trade-related investment measures and intellectual property protection. You will also soon learn that compliance with these agreements would be very expensive. (These concerns are discussed in Chapter 6.) Under the WTO`s new dispute settlement procedures, developed countries could no longer ignore international rulings on trade practices, limiting the ability of governments to protect domestic industry. The weakening of Section 301 to remove the right to unilateral action and the prohibition on the use of restrictive agreements have affected many U.S. industries. However, WTO rules continued to allow certain forms of import protection under the GATT, the main ones being anti-dumping duties, countervailing duties and safeguard measures.  For example, standards have the legitimate aim of ensuring consistent quality for consumers in one country, but they can also easily be designed in such a way that products manufactured in other countries do not enter the market.