Which of the following is not correct about WTO (World Trade Organization)?

1. The topmost decision-making body of the WTO is the General Council.

2. One of the objectives of the WTO is to improve the Balance of Payment crisis.

3. Trade Policy Review is a component of WTO.

  1. 1 and 2 only
  2. 2 and 3 only
  3. 3 only
  4. 1 only

Answer (Detailed Solution Below)

Option 1 : 1 and 2 only

Detailed Solution

Download Solution PDF

The correct answer is 1 and 2.

Key Points

  • The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
  • The bulk of the WTO’s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT).
  • The WTO is currently the host to new negotiations, under the ‘Doha Development Agenda’ launched in 2001.
  • WTO is not responsible for the Balance of Payment Crisis. IMF (International Monetary Fund) deals with the BoP crisis. Hence, Statement 2 is incorrect.
  • Ministerial Conference
    • The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two yearsHence, Statement 1 is incorrect.
    • The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements.
  • General Council
    • The General Council is the WTO’s highest-level decision-making body located in Geneva, meeting regularly to carry out the functions of the WTO.
    • It has representatives (usually ambassadors or equivalent) from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years.
  • Functions of WTO

    • negotiating the reduction or elimination of obstacles to trade (import tariffs, other trade barriers) and agreeing on rules governing the conduct of international trade (e.g. anti-dumping, subsidies, product standards, etc.).
    • administering and monitoring the application of the WTO's agreed rules for trade in goods, trade in services, and trade-related intellectual property rights.
    • monitoring and reviewing the trade policies of our members, as well as ensuring transparency of regional and bilateral trade agreements. Hence, Statement 3 is correct.
    • settling disputes among our members regarding the interpretation and application of the agreements.
    • building capacity of developing country government officials in international trade matters.
    • assisting the process of accession of some 30 countries who are not yet members of the organization.
    • conducting economic research and collecting and disseminating trade data in support of the WTO's other main activities.
    • explaining to and educating the public about the WTO, its mission, and its activities.

More World Trade Organisation (WTO) Questions

More International Economic institutions Questions

Get Free Access Now
Hot Links: teen patti mastar teen patti win teen patti master gold