Question

Which of the following were the aims behind the setting up of the World Trade Organization (WTO) ?

1. Promotion of free trade and resource flows across countries

2. Protection of intellectual property rights

3. Managing balanced trade between different countries

4. Promotion of trade between the former East Bloc countries and the western world

Select the correct answer by using the codes given below:

Codes:

(a) 1, 2, 3 and 4 (b) 1 and 2 (c) 2 and 3 (d) 1 and 4

Answer 1

(b) World Trade Organization (WTO) is a body making global trade rules with binding effects on its members. It is not only an institution, but also a set of agreements. The WTO regime is known as the rulesbased multilateral trading system. The history of the Organization dates back to 1947, when the General Agreement on Tariffs and Trade (GATT) was set up to reduce tariffs barriers, remove trade barriers and facilitate international trade in goods and services. Over the years, GATT held eight rounds of multilateal trade negotiations, the last and most extensive being the Uruguay Round (1986-1994). The WTO came into being at Marrakesh in 1995, following the conclusion of the Uruguay Round. Ater this GATT ceased to exist, and its legal texts were incorporated into the WTO as GATT– 1994. The eastern bloc nations have no special status as a member of WTO.