Identify the correct statements about the World Trade Organisation.
A. It was transformed from General Agreement for Tariffs and Trade
B. It is the only international organisation dealing with the global rules of trade
C. It resolves disputes between its member nations
D. It is bridging the gap between rich and poor nations
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, B, C only
The World Trade Organisation (WTO) looks after free and fair trade among nations. It took the place of GATT from 1st January 1995.
(A) It was transformed from General Agreement for Tariffs and Trade — Correct. GATT was formed by some countries in 1948. In 1994 the members decided to set up a permanent institution, and GATT was transformed into the WTO.
(B) It is the only international organisation dealing with the global rules of trade — Correct. No other international body deals with the global rules of trade between nations.
(C) It resolves disputes between its member nations — Correct. Besides setting the rules for the global trading system, the WTO resolves disputes between its member nations.
(D) It is bridging the gap between rich and poor nations — Incorrect. The WTO is criticised for the opposite. Free trade is widening the gulf between rich and poor by making rich countries richer. NTA changed “widening the gulf” to “bridging the gap”, and a true line became false. Read every word before you mark the answer.
NCERT (2026-27): “World Trade Organisation 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.” “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.” |