Which among the following statements is not correct about WTO?
GATT was established in 1948 with 29 countries
Understanding WTO and GATT Statements
The question asks us to identify the statement that is not correct among the given options regarding the World Trade Organization (WTO) and its predecessor, the General Agreement on Tariffs and Trade (GATT).
Analyzing Each Statement about WTO and GATT
Let's carefully examine each provided statement:
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Statement 1: It is a successor organisation to GATT.
This statement refers to the WTO being the successor to GATT. This is historically accurate. The WTO was established to replace GATT and provide a more robust institutional framework for international trade.
Verdict: This statement is correct.
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Statement 2: It was founded in 1995.
This statement refers to the founding year of the WTO. The Agreement Establishing the World Trade Organization was signed in Marrakesh, Morocco, on April 15, 1994, and officially came into effect on January 1, 1995.
Verdict: This statement is correct.
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Statement 3: GATT was established in 1948 with 29 countries.
This statement talks about the establishment of GATT, its year, and the number of countries involved. The General Agreement on Tariffs and Trade was signed in Geneva on October 30, 1947, and entered into force on January 1, 1948. The original number of contracting parties (countries that signed the agreement) was 23, not 29.
Verdict: This statement is not correct.
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Statement 4: The aim of WTO is to promote rule-based trading regime in which nations cannot place arbitrary restrictions on trade.
This statement describes the primary objective of the WTO. The WTO's core function is indeed to ensure that trade flows as smoothly, predictably, and freely as possible, based on a set of agreed-upon rules. This prevents countries from imposing arbitrary restrictions that hinder international trade.
Verdict: This statement is correct.
Identifying the Incorrect Statement
Based on the analysis, the third statement, "GATT was established in 1948 with 29 countries," contains incorrect information about the number of original contracting parties to GATT. The correct number was 23.
Revision Table: WTO and GATT Key Facts
| Feature | GATT | WTO |
|---|---|---|
| Established/Founded | Signed 1947, Effective 1948 | Founded 1995 |
| Nature | Provisional agreement, text of rules | Permanent institution |
| Scope | Mainly trade in goods | Trade in goods, services, intellectual property |
| Dispute Settlement | Less effective, potential delays | More structured and time-bound system |
| Original Members/Parties | 23 Contracting Parties (in 1948) | ~120 Members (in 1995) |
Additional Information on WTO and GATT Evolution
The transition from GATT to WTO was a significant step in the evolution of the global trading system. GATT, which originated from the failed attempt to create an International Trade Organization (ITO), served primarily as a set of rules for trade in goods, with its framework managed through periodic rounds of negotiations.
Key points about the GATT to WTO transition:
- GATT operated on a provisional basis for over four decades.
- The Uruguay Round (1986-1994) was the final and most comprehensive round under GATT, leading to the creation of the WTO.
- The WTO incorporated GATT and expanded its mandate to include trade in services (GATS) and trade-related aspects of intellectual property rights (TRIPS).
- The WTO also established a more effective and binding dispute settlement mechanism compared to GATT.
Understanding the differences and evolution from GATT to WTO is crucial for comprehending the current international trade landscape.
Important Questions from Forms of Market and Price Determination
The following statements are about measuring poverty. Select the correct statement:
(A) There are many ways of measuring poverty
(B) Poverty may be measured on the basis of monetary value of the minimum calorie intake
(C) Government uses Monthly Per Capita Expenditure as a proxy for income of households to identify the poor
(D) Measures of poverty differ for different sections of society
(E) Factors such as accessibility to basic education, health care, drinking water & sanitation are not considered to develop poverty line
Choose the correct answer from the options given below:
Match List-I with List-II:
List-I List-II (A) Price changes but no change in demand (I) Perfectly elastic (ep = ∞) (B) Price remains the same but demand changes (II) Unit elastic (ep = 1) (C) Price and demand change in the same proportion (III) More than elastic (D) Price changes in less proportion than demand (IV) Perfectly inelastic (ep = 0) Institution which organises the free interaction of individuals pursuing their respective economic activities is called:
Select the correct statement related to Alternate marketing channels:
(A) In the alternate marketing channels, Farmers sell their products directly to consumers.
(B) In the alternate marketing channels, Farmers sell their products directly to the Central Government.
(C) In the alternate marketing channels, Farmers sell their products to the Middle men.
(D) In the alternate marketing channels, Farmers sell their products directly to the whole sale market.
Choose the correct answer from the options given below:
Match List - I with List - II:
List - I List - II (A) Income Method (I) Calculated at current prices (B) Expenditure Method (II) Calculated at constant prices (C) Real GDP (III) Aggregate of final expenditures (D) Nominal GDP (IV) Aggregate of factor incomes Choose the correct answer from the options given below:
