Consider the following statements about the World Trade Organisation (WTO):
(A) The WTO was founded in 1995 as the successor organisation to GATT.
(B) GATT was established in 1948 as the global trade organisation to administer all multilateral trade agreements.
(C) The WTO agreements cover trade in goods but not trade in services.
(D) The WTO also aims to enlarge production and trade of services and to protect the environment.
(E) India kept its WTO commitments by removing quantitative restrictions on imports and raising tariff rates.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (D) only
(A) The WTO was founded in 1995 as the successor organisation to GATT. — Correct. The WTO came in 1995, after GATT.
(B) GATT was established in 1948 as the global trade organisation to administer all multilateral trade agreements. — Correct. GATT was set up in 1948 for this purpose.
(C) The WTO agreements cover trade in goods but not trade in services. — Incorrect. They cover trade in goods as well as services.
(D) The WTO also aims to enlarge production and trade of services and to protect the environment. — Correct. Both are part of its purpose.
(E) India kept its WTO commitments by removing quantitative restrictions on imports and raising tariff rates. — Incorrect. India reduced tariff rates; it did not raise them.
NCERT (2026-27): “World Trade Organisation (WTO): 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. WTO is expected to establish a rule-based trading regime in which nations cannot place arbitrary restrictions on trade. In addition, its purpose is also to enlarge production and trade of services, to ensure optimum utilisation of world resources and to protect the environment. The WTO agreements cover trade in goods as well as services to facilitate international trade (bilateral and multilateral) through removal of tariff as well as non-tariff barriers and providing greater market access to all member countries.” “World Trade Organisation (WTO): … India has kept its commitments towards liberalisation of trade, made in the WTO, by removing quantitative restrictions on imports and reducing tariff rates.” |