INSIGHT UPSC QUIZ

GS Economy Miscellaneous
Q.

Read the following statements carefully with reference to ‘World Trade Organisation (WTO)’:

1. WTO was founded as the successor organisation to the General Agreement on Trade and Tariff to facilitate international trade. 

2. WTO agreement spells out principles of liberalisation and it covers goods, services and intellectual property. 

Which of the statement(s) given above is/are NOT correct?

Explanation:

ANSWER: (D) 

Statement 1 is correct.

  • The WTO was founded in 1995 as the successor organisation to the General Agreement on Trade and Tariff (GATT). 
  • GATT was established in 1948 with 23 countries as the global trade organisation to administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes. 
  • The WTO agreements cover trade in goods as well as services to facilitate international trade (both bilateral and multilateral).
  • WTO through removal of tariff as well as non-tariff barriers, provides greater market access to all member countries. 

Statement 2 is correct.

  • The WTO agreements cover goods, services and intellectual property
  • They spell out the principles of liberalization, and the permitted exceptions. 
  • They include individual countries’ commitments to lower customs tariffs and other trade barriers, and to open and keep open services markets. 

More Questions Selected Just For You. Attempt Now!