Kunming Amusement Company (KAC) is a toy manufacturer located in Yunnan province in southern China. KAC routinely dumps industrial waste from its manufacturing operations in the nearby Mekong River. The Chinese government is aware of this practice but has failed to take any action to prevent to occurrence or inform neighboring states. Two months ago, there was an industrial accident at KAC's manufacturing facility, which resulted in the significant discharge of numerous toxins (including lead-based paint) into the Mekong River. KAC informed the Chinese government of this accident, but the Chinese government failed to inform downstream states of the accident. As a result, people in Laos, Thailand, Cambodia and Vietnam unknowingly utilized tainted water for numerous domestic purposes, including drinking bathing, irrigation and watering of livestock. The accident was only discovered after numerous downstream users became ill and there were massive fish kills, which resulted in subsequent testing of the water and discovery of the contamination. If the United States responded to these events by increasing surveillance of KAC's toys for lead content, would such a ban be consistent with its obligations pursuant to GATT? Why or why not? If the United States responded to these events by banning importation of all Chinese toys manufactured in an environmentally unsound manner, would such a ban be consistent with its obligations pursuant to GATT? Why or why not?
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