What is the objective of the World Trade Organisation (WTO)?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → To establish a rule-based trading regime in which nations cannot place arbitrary restrictions on trade.
The WTO is expected to set up a rule-based trading regime, in which nations cannot put arbitrary restrictions on trade.
Option (1) To establish a rule-based trading regime in which nations cannot place arbitrary restrictions on trade. — Correct. This is the main objective of the WTO.
Option (2) To give loans to countries facing a balance of payments crisis — Incorrect. In 1991, India got such a loan from the World Bank and the IMF. The WTO deals with trade rules, not loans.
Option (3) To fix the exchange rates of the currencies of member countries — Incorrect. The WTO does not fix exchange rates. Its agreements cover trade in goods and services.
Option (4) To protect domestic industries through quantitative restrictions on imports — Incorrect. This is the opposite of its aim. The WTO works for the removal of tariff and non-tariff barriers.
NCERT (2026-27): “World Trade Organisation (WTO): … 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.” |