Assertion: Free trade is actually widening the gulf between rich and poor by making rich countries more rich.
Reasoning: Many developed countries have not fully opened their markets to products from developing countries stating that the issues of health, worker’s rights, child labour and environment are ignored.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is Option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Assertion: Free trade is actually widening the gulf between rich and poor by making rich countries more rich. True: While free trade is intended to benefit all, critics argue that the "gulf" between developed and developing nations is widening. Richer countries often have the infrastructure and capital to dominate global markets, while developing nations may struggle to compete, leading to an unequal distribution of wealth.
Reasoning: Many developed countries have not fully opened their markets to products from developing countries stating that the issues of health, worker’s rights, child labour and environment are ignored. True: It is a documented fact in international relations that developed nations often use non-tariff barriers (NTBs). By citing concerns like environmental standards, child labor, or health regulations (Sanitary and Phytosanitary measures), they effectively restrict imports from developing countries.

Does R explains A? Yes. The reason the "gulf" is widening (Assertion) is precisely because the "free trade" isn't actually "free" or "fair." When developed countries block products from developing nations using these reasons (Reasoning), it prevents developing economies from growing through trade, while the rich countries continue to protect their own interests and wealth.

NCERT: 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. This is because the influential nations in the WTO focus on their own commercial interests. Moreover, many developed countries have not fully opened their markets to products from developing countries. It is also argued that issues of health, worker’s rights, child labour and environment are ignored.