Final answer:
It is true that countries are required to notify the WTO when entering into preferential trade agreements, as international trade agreements serve as a counterbalance to domestic special interests and ensure fair and predictable global trade.
Step-by-step explanation:
True, it is mandatory for countries to notify the World Trade Organization (WTO) when they enter into preferential trade agreements. The WTO is an international body that sets rules for global trade and ensures trade flows smoothly and non-discriminatorily among member nations. When countries engage in bilateral or regional trade deals like USCMA/NAFTA, the EU, or TPP, they must adhere to WTO rules, which include reporting these agreements to offer transparency and allow for assessment in accordance with WTO guidelines designed to maintain a balanced and fair international trade system.
Countries may implement protectionist trade policies to shield domestic industries from foreign competition. However, engaging in international trade agreements through the WTO provides a method to counterbalance domestic special interests. This can help create a more predictable global trade environment where a member of Congress could relay the constraints of international commitments to domestic industries seeking protectionism.