Which of the following is NOT correct about the World Trade Organization (WTO)?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → GATT was transformed into the World Trade Organisation from 1st January 1994.
Option (1) The General Agreement for Tariffs and Trade (GATT) was formed in 1948. — True (Incorrect). GATT was formed by some countries in 1948 to free world trade from high customs tariffs and other restrictions.
Option (2) GATT was transformed into the World Trade Organisation from 1st January 1994. — Not true (Correct). In 1994 the member countries only decided to set up a permanent body; GATT became the WTO from 1st January 1995. The option has put the year of the decision in place of the year of the change.
Option (3) It is the only international organisation dealing with the global rules of trade between nations. — True (Incorrect). The WTO is the only international organisation that deals with the global rules of trade between nations.
Option (4) It sets the rules for the global trading system and resolves disputes between its member nations. — True (Incorrect). These are its two main jobs: setting the rules of the global trading system and settling disputes among members.
NTA kept the decision year, 1994, and dropped the year the WTO actually began, 1995. With dates, check both the event and the year before you mark.
NCERT (2025-26): “World Trade Organisation … 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.…” |