World Trade Organization MCQ Quiz - Objective Question with Answer for World Trade Organization - Download Free PDF

The correct answer is 'Quadrilateral Security Dialogue'

Key Points

• Quadrilateral Security Dialogue (QUAD):
  • The Quadrilateral Security Dialogue, commonly referred to as the QUAD, is a strategic forum comprising four nations: the United States, India, Japan, and Australia.
  • It was originally initiated in 2007 to enhance collaboration among these nations, focusing on shared interests in the Indo-Pacific region.
  • The QUAD aims to ensure a free, open, and inclusive Indo-Pacific, promoting stability, security, and economic prosperity.
  • Key areas of cooperation include maritime security, counterterrorism, climate change, emerging technologies, and disaster relief efforts.
  • The QUAD has gained prominence in recent years as a counterbalance to China's growing influence in the Indo-Pacific region.

Additional Information

• Option 1: Quadrilateral Union of Developing Countries:
  • This option is incorrect as the QUAD is not specifically focused on being a union of developing countries.
  • While India is considered a developing nation, the other members (the US, Japan, and Australia) are developed nations, and the QUAD's purpose extends beyond economic development.
• Option 3: Quadrilateral Dialogue:
  • This option is partially correct but incomplete. While the QUAD does involve dialogue among four nations, the term "Quadrilateral Security Dialogue" specifically highlights its focus on security-related cooperation.
  • Simply referring to it as "Quadrilateral Dialogue" omits the critical aspect of security, which is central to the group's objectives.
• Option 4: Quadrilateral Union Dialogue:
  • This option is incorrect as the QUAD is not a formal union or alliance; it is an informal strategic forum.
  • The term "Union" implies a level of institutionalization or binding agreements that do not apply to the QUAD's nature of collaboration.
• Option 5: (Blank):
  • This option is not valid and does not provide any meaningful context or explanation related to the QUAD.

The correct answer is 'Human Right Commission'

Key Points

• Human Right Commission:
  • The Human Right Commission is not one of the principal organs of the United Nations (UN).
  • It was a subsidiary body of the Economic and Social Council and has been replaced by the Human Rights Council in 2006.
  • While it plays a significant role in promoting and protecting human rights, it is not considered a principal organ of the UN.

Additional Information

• Trusteeship Council:
  • The Trusteeship Council is one of the principal organs of the UN, established to oversee the administration of Trust Territories and ensure that their inhabitants were prepared for self-government.
  • Its operations have been suspended since the last Trust Territory, Palau, became independent in 1994.
• Economic and Social Council (ECOSOC):
  • ECOSOC is a principal organ of the UN responsible for coordinating the economic, social, and related work of 15 specialized agencies, their functional commissions, and five regional commissions.
  • It serves as a central platform for fostering debate and innovative thinking on sustainable development.
• International Court of Justice (ICJ):
  • The ICJ is the principal judicial organ of the UN, established to settle legal disputes submitted by states and to give advisory opinions on legal questions referred to it by authorized international organs and agencies.
  • It is located in The Hague, Netherlands, and is composed of 15 judges elected to nine-year terms.

The correct answer is 'WTO has conducted 9 rounds of trade negotiations since World War II, and the Doha Round is the latest round of negotiation for WTO members.'

Key Points

• World Trade Organization (WTO):
  • The WTO is an international organization that deals with the global rules of trade between nations. Its goal is to ensure trade flows as smoothly, predictably, and freely as possible.
  • Established in 1995, the WTO replaced the General Agreement on Tariffs and Trade (GATT), which was in place since 1948.
• Trade Negotiation Rounds:
  • Since the Second World War, there have been nine rounds of trade negotiations under the GATT and WTO framework.
  • These rounds focused on reducing trade barriers and negotiating global trade rules among member countries.
  • The most notable rounds include the Uruguay Round, which led to the establishment of the WTO, and the Doha Round, which is the latest round initiated in 2001.
• Doha Round:
  • The Doha Round, also known as the Doha Development Agenda, aims to address the needs of developing countries and improve global trade for mutual benefit.
  • It covers topics such as agricultural subsidies, market access, industrial tariffs, and special treatment for developing nations.
  • However, the Doha Round has faced challenges and delays due to disagreements among member nations over various issues, particularly agricultural subsidies and trade liberalization.

Additional Information

• Incorrect Options:
  • (A) WTO is headquartered in Hague: This is incorrect. The WTO is headquartered in Geneva, Switzerland, not in Hague.
  • (D) WTO has 154 members: This was outdated information. As of recent data, WTO has 164 members, not 154.
• Historical Context:
  • The WTO builds upon the legacy of GATT, which successfully facilitated global trade negotiations and reduced trade barriers post-World War II.
  • The organization's role has expanded over time to include dispute resolution, monitoring trade policies, and fostering cooperation among member nations.

The correct answer is Option 3.

Key Points

•  The WTO's top decision-making body, the Ministerial Conference, typically meets every two years.
• It brings together all WTO members, which are either countries or customs unions.
• The Ministerial Conference has the authority to make decisions on all issues covered by any multilateral trade agreement. 
• The MC 13 was held in Abu Dhabi.

The correct answer is Option 3.

Key Points

•  The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. 
• Governments use the organization to establish, revise, and enforce the rules that govern international trade in cooperation with the United Nations System. 
• The WTO is the world's largest international economic organization, with 166 members representing over 98% of global trade and global GDP.

The correct answer is Option 3.

Key Points

•  The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. 
• Governments use the organization to establish, revise, and enforce the rules that govern international trade in cooperation with the United Nations System. 
• The WTO is the world's largest international economic organization, with 166 members representing over 98% of global trade and global GDP.

The correct answer is 'WTO has conducted 9 rounds of trade negotiations since World War II, and the Doha Round is the latest round of negotiation for WTO members.'

Key Points

• World Trade Organization (WTO):
  • The WTO is an international organization that deals with the global rules of trade between nations. Its goal is to ensure trade flows as smoothly, predictably, and freely as possible.
  • Established in 1995, the WTO replaced the General Agreement on Tariffs and Trade (GATT), which was in place since 1948.
• Trade Negotiation Rounds:
  • Since the Second World War, there have been nine rounds of trade negotiations under the GATT and WTO framework.
  • These rounds focused on reducing trade barriers and negotiating global trade rules among member countries.
  • The most notable rounds include the Uruguay Round, which led to the establishment of the WTO, and the Doha Round, which is the latest round initiated in 2001.
• Doha Round:
  • The Doha Round, also known as the Doha Development Agenda, aims to address the needs of developing countries and improve global trade for mutual benefit.
  • It covers topics such as agricultural subsidies, market access, industrial tariffs, and special treatment for developing nations.
  • However, the Doha Round has faced challenges and delays due to disagreements among member nations over various issues, particularly agricultural subsidies and trade liberalization.

Additional Information

• Incorrect Options:
  • (A) WTO is headquartered in Hague: This is incorrect. The WTO is headquartered in Geneva, Switzerland, not in Hague.
  • (D) WTO has 154 members: This was outdated information. As of recent data, WTO has 164 members, not 154.
• Historical Context:
  • The WTO builds upon the legacy of GATT, which successfully facilitated global trade negotiations and reduced trade barriers post-World War II.
  • The organization's role has expanded over time to include dispute resolution, monitoring trade policies, and fostering cooperation among member nations.

The correct answer is Option 3.

Key Points

•  The WTO's top decision-making body, the Ministerial Conference, typically meets every two years.
• It brings together all WTO members, which are either countries or customs unions.
• The Ministerial Conference has the authority to make decisions on all issues covered by any multilateral trade agreement. 
• The MC 13 was held in Abu Dhabi.

The correct answer is Option 1.

Key Points

• WTO is the successor of GATT.

  • This is true.
  • The World Trade Organization (WTO) was established on January 1, 1995, replacing the General Agreement on Tariffs and Trade (GATT) which had been in place since 1948.
  • Hence, Statement A is correct.

• WTO came into existence on 1st January 1996.

  • This is false.
  • The WTO actually came into existence on January 1, 1995, not 1996.
  • Hence, Statement B is incorrect.

• Topmost decision making body of WTO is the ministerial conference.

  • This is true.
  • The Ministerial Conference, which meets at least once every two years, is the topmost decision-making body of the WTO.
  • Hence, Statement C is correct.

• WTO has a separate legal personality.

  • This is true.
  • The WTO has a legal personality that is separate from that of its member countries, meaning it can enter into agreements, be a party to disputes, and be held liable independently of its members.
  • Hence, Statement D is correct.

Key Points

Correct Answer: 3) Thirteenth Ministerial Conference
The Twelfth Ministerial Conference (MC12) was initially scheduled to be held in Nur-Sultan, Kazakhstan, in June 2020 but was canceled due to the COVID-19 pandemic. Instead, it took place in Geneva, Switzerland, from 12–17 June 2022. Therefore, MC12 did not extend its deliberations to March 1, 2024.

The Thirteenth Ministerial Conference (MC13) is the one referred to in the passage, which was held in Abu Dhabi, U.A.E., on 26–29 February 2024.  MC13 extended its deliberations to Friday, 1 March 2024, in order to complete its discussions. Hence, option 3) Thirteenth Ministerial Conference is the correct answer based on the information provided.

The assertion (A) and reason (R) statements provided are centered around the legal tests of proportionality, necessity, and balancing within the context of international trade law, specifically referring to agreements such as the General Agreement on Tariffs and Trade (GATT), the General Agreement on Trade in Services (GATS), and the agreements on Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT).

Hint

Assertion (A): The assertion states that the tests of proportionality, necessity, and balancing are found at prominent places in the GATS, the GATT, as well as in the SPS and TBT Agreements. This statement is accurate. These tests are indeed critical components of these international agreements, designed to ensure that regulations imposed by countries are fair, necessary for protecting health, safety, or environment, and are not more trade-restrictive than necessary. For example, the necessity and proportionality tests are used in the context of GATT Article XX, which allows for exceptions to the general rules under specific circumstances deemed necessary to protect human, animal, or plant life or health, among other objectives. Similarly, principles related to these tests are embedded in the SPS and TBT agreements, focusing on ensuring that sanitary and phytosanitary measures and technical regulations, respectively, do not create unnecessary obstacles to international trade.

Reason (R): The reason given is that the meaning of these tests and their interrelationship is not always clear. This statement is also correct. While these tests are fundamental to the operation of the aforementioned agreements, their application in specific cases can lead to interpretive challenges. The World Trade Organization (WTO) dispute settlement bodies often grapple with the precise meaning and application of these tests in diverse cases, where the specific facts and circumstances can lead to different outcomes. The vagueness or lack of clarity in how these tests should be applied in every situation can result in disputes among member countries, requiring careful legal reasoning and judgment by adjudicating bodies to resolve.

Given the statements above, the most appropriate answer is option 2: Both (A) and (R) are correct but (R) is not the correct explanation of (A). The reason (R) is not the correct explanation for assertion (A) because the fact that the interrelationships and meanings of the tests are not always clear does not directly explain why these tests are found in GATS, GATT, and the SPS and TBT agreements. Instead, these tests are included in the agreements because they are necessary for balancing the rights and obligations of member states in regulating trade to achieve legitimate policy objectives, such as protecting health or the environment, while ensuring that such regulations do not constitute disguised restrictions on international trade. The complexity and lack of clarity in applying these tests, as mentioned in reason (R), is more of an observation on the practical and interpretive challenges faced in the application of these principles, rather than an explanation for their presence in the agreements.

The correct answer is 'Quadrilateral Security Dialogue'

Key Points

• Quadrilateral Security Dialogue (QUAD):
  • The Quadrilateral Security Dialogue, commonly referred to as the QUAD, is a strategic forum comprising four nations: the United States, India, Japan, and Australia.
  • It was originally initiated in 2007 to enhance collaboration among these nations, focusing on shared interests in the Indo-Pacific region.
  • The QUAD aims to ensure a free, open, and inclusive Indo-Pacific, promoting stability, security, and economic prosperity.
  • Key areas of cooperation include maritime security, counterterrorism, climate change, emerging technologies, and disaster relief efforts.
  • The QUAD has gained prominence in recent years as a counterbalance to China's growing influence in the Indo-Pacific region.

Additional Information

• Option 1: Quadrilateral Union of Developing Countries:
  • This option is incorrect as the QUAD is not specifically focused on being a union of developing countries.
  • While India is considered a developing nation, the other members (the US, Japan, and Australia) are developed nations, and the QUAD's purpose extends beyond economic development.
• Option 3: Quadrilateral Dialogue:
  • This option is partially correct but incomplete. While the QUAD does involve dialogue among four nations, the term "Quadrilateral Security Dialogue" specifically highlights its focus on security-related cooperation.
  • Simply referring to it as "Quadrilateral Dialogue" omits the critical aspect of security, which is central to the group's objectives.
• Option 4: Quadrilateral Union Dialogue:
  • This option is incorrect as the QUAD is not a formal union or alliance; it is an informal strategic forum.
  • The term "Union" implies a level of institutionalization or binding agreements that do not apply to the QUAD's nature of collaboration.
• Option 5: (Blank):
  • This option is not valid and does not provide any meaningful context or explanation related to the QUAD.

The correct answer is 'Human Right Commission'

Key Points

• Human Right Commission:
  • The Human Right Commission is not one of the principal organs of the United Nations (UN).
  • It was a subsidiary body of the Economic and Social Council and has been replaced by the Human Rights Council in 2006.
  • While it plays a significant role in promoting and protecting human rights, it is not considered a principal organ of the UN.

Additional Information

• Trusteeship Council:
  • The Trusteeship Council is one of the principal organs of the UN, established to oversee the administration of Trust Territories and ensure that their inhabitants were prepared for self-government.
  • Its operations have been suspended since the last Trust Territory, Palau, became independent in 1994.
• Economic and Social Council (ECOSOC):
  • ECOSOC is a principal organ of the UN responsible for coordinating the economic, social, and related work of 15 specialized agencies, their functional commissions, and five regional commissions.
  • It serves as a central platform for fostering debate and innovative thinking on sustainable development.
• International Court of Justice (ICJ):
  • The ICJ is the principal judicial organ of the UN, established to settle legal disputes submitted by states and to give advisory opinions on legal questions referred to it by authorized international organs and agencies.
  • It is located in The Hague, Netherlands, and is composed of 15 judges elected to nine-year terms.

The correct answer is Option 4.

Key Points

•  The World Trade Organization (WTO) was established as the successor to the GATT on January 1, 1995, under the Marrakesh Agreement, putting the global trading system on a firm constitutional footing with the evolution of international economic legislation that resulted from the Uruguay Round of GATT negotiations.
• The Uruguay Round of trade negotiations prepared the ground for international trade liberalization, with a significant change from the negotiation strategy to the institutional framework foreseen by the GATT-WTO Agreement.
• In 1994, the GATT 1947 and the WTO coexisted for a one-year transition period. In January 1995, however, the WTO totally supplanted the GATT.

The correct answer is 'General Agreement on Tariffs and Trade (GATT)'

Key Points

• General Agreement on Tariffs and Trade (GATT):
  • The World Trade Organisation (WTO) is the successor to the General Agreement on Tariffs and Trade (GATT), which was established in 1948.
  • GATT was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.
  • In 1995, the WTO was formed to replace GATT and to oversee and enforce international trade rules and agreements.
  • The WTO has a broader scope than GATT, covering trade in goods, services, and intellectual property rights.

Additional Information

• Marrakesh Agreement:
  • The Marrakesh Agreement established the WTO in 1995, but it is not the predecessor of WTO. It is the founding agreement of the WTO.
• Doha Declaration:
  • The Doha Declaration was adopted in 2001 during the WTO Ministerial Conference in Doha, Qatar. It focuses on the WTO’s work program and trade negotiations, particularly concerning developing countries.
• Uruguay Round:
  • The Uruguay Round was the 8th round of multilateral trade negotiations under GATT, conducted between 1986 and 1994. It led to the creation of the WTO but was not the predecessor of WTO.