Identify the correct statement about World Trade Organization.

(1) It was established in 1994

(2) All decisions are taken by the five dominant economies in the world

(3) It formulates rules for national and international trade

(4) It succeeded General Agreement on Trade and Tariffs (GATT)

4

The World Trade Organisation (WTO) is an international organisation which sets the rules for global trade. This organisation was set up in 1995 as the successor to the General Agreement on Trade and Tariffs (GATT) created after the Second World War. It has 164 members (as on 29 July 2016). All decisions are taken unanimously but the major economic powers such as the US, EU and Japan have managed to use the WTO to frame rules of trade to advance their own interests. The developing countries often complain of non-transparent procedures and WTO being pushed around by big powers.