Identify the correct statements about WTO (World Trade Organisation).
(A) It is the only international organisation dealing with the global rules of trade between nations.
(B) It sets the rules for the global trading system and resolves disputes between its member nations.
(C) It helps the poor countries in promoting their trade activities and gives priority to environmental issues.
(D) It also covers trade in services, such as telecommunication and banking, and other issues such as intellectual rights.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (D) only
The World Trade Organisation (WTO) began on 1st January 1995 in place of GATT. It looks after free and fair trade between nations.
(A) It is the only international organisation dealing with the global rules of trade between nations. — Correct. No other world body makes the rules of trade between nations.
(B) It sets the rules for the global trading system and resolves disputes between its member nations. — Correct. It makes the rules and also settles trade disputes between member countries.
(C) It helps the poor countries in promoting their trade activities and gives priority to environmental issues. — Incorrect. The WTO is criticised for the opposite. Its critics argue that free trade widens the gulf between rich and poor countries, and that issues such as health, child labour and the environment are ignored.
(D) It also covers trade in services, such as telecommunication and banking, and other issues such as intellectual rights. — Correct. Besides goods, it covers services such as banking and telecommunication, and intellectual rights.
NCERT (2026-27): “World Trade Organisation … 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. … It is also argued that issues of health, worker’s rights, child labour and environment are ignored.” |