Read the given passage carefully and answer the following questions.

In 1948, to liberalise the world from high customs tariffs and various other types of restrictions, General Agreement for Tariffs and Trade (GATT) was formed by some countries. In 1994, it was decided by the member countries to set up a permanent institution for looking after the promotion of free and fair trade amongst nation and the GATT was transformed into the World Trade Organisation from 1st January 1995. WTO is the only international organisation dealing with the global rules of trade between nations. It sets the rules for the global trading system and resolves disputes between its member nations. WTO also covers trade in services, such as telecommunication and banking, and others issues such as intellectual rights. The WTO has however been criticised and opposed by those who are worried about the effects of free trade and economic globalisation. It is argued that free trade does not make ordinary people's lives more prosperous. It is actually widening the gulf between rich and poor by making rich countries more rich. This is because the influential nations in the WTO focus on their own commercial interests. Moreover, many developed countries have not fully opened their markets to products from developing countries. It is also argued that issues of health, worker's rights, child labour and environment are ignored.

Identify the most appropriate reason for the formation of GATT?

To remove high custom tariffs and various other types of restrictions imposed by some countries.

The correct answer is Option (4) → To remove high custom tariffs and various other types of restrictions imposed by some countries.

The passage clearly states that in 1948, GATT was formed to liberalise the world from high customs tariffs and other restrictions. Therefore, the primary reason for the formation of GATT was to promote freer trade by reducing tariffs and restrictions.