GATT stands for_
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → General Agreement on Trade and Tariff
Trade between countries needs common rules, so that no nation can shut out another’s goods at will. In 1948, 23 countries set up such a set of rules as the global trade organisation: an agreement on tariffs, the taxes on imports, and on trade, called GATT. Its task was to administer all multilateral trade agreements and give all countries equal opportunities in the international market.
In 1995 GATT was succeeded by the World Trade Organisation (WTO), which is expected to set up a rule-based trading regime in which nations cannot place arbitrary restrictions on trade. The ‘A’ of GATT stands for Agreement; Awareness, Arrangement and Terms belong to none of its expansions.
Note: The official name of GATT is the General Agreement on Tariffs and Trade. The NCERT book (2025-26) writes it as ‘General Agreement on Trade and Tariff (GATT)’, with the last two words the other way round, and Option (4) takes the book’s words as they are. Option (4) is the answer as per NCERT, and it is the only option that has ‘General Agreement’ together with both tariff and trade. The option follows the book’s word order, so the mix-up is not your mistake.
NCERT (2025-26): “3.5 Globalisation … World Trade Organisation (WTO): The WTO was founded in 1995 as the successor organisation to the General Agreement on Trade and Tariff (GATT). GATT was established in 1948 with 23 countries as the global trade organisation to administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes. WTO is expected to establish a rule-based trading regime in which nations cannot place arbitrary restrictions on trade.…” |