Which of the following is/are correct with respect to the World Trade Organization (WTO)?

1. WTO agreements cover trade in goods as well as services to facilitate international trade.
2. It aims to remove tariff as well as non-tariff barriers and provide greater market access to all member countries.
3. India has kept its commitments towards liberalisation of trade, made in the WTO, by removing quantitative restrictions on imports and reducing tariff rates.​

Correct option is D

The correct answer is (D) 1, 2 and 3

Explanation:

1. Statement 1 – Correct: The World Trade Organization (WTO) agreements cover trade in goods, services, and intellectual property to facilitate smooth international trade among member nations.
2. Statement 2 – Correct: The WTO’s primary aim is to remove both tariff and non-tariff barriers, thereby ensuring greater market access for all member countries under fair and transparent trade rules.
3. Statement 3 – Correct: India has honoured its WTO commitments by:
• Removing quantitative restrictions on imports (except a few sensitive items like agriculture and defense-related goods).
• Reducing tariff rates significantly since the 1990s as part of liberalisation measures aligned with WTO obligations.

Information Booster:

• The WTO was established in 1995, replacing the GATT (General Agreement on Tariffs and Trade).
• It has 164 members (as of 2024), making it one of the largest international economic organizations.
• The WTO functions through various agreements such as:
• GATT – for trade in goods.
• GATS (General Agreement on Trade in Services) – for services.
• TRIPS (Trade-Related Aspects of Intellectual Property Rights) – for intellectual property.
• Dispute resolution is a key feature of WTO, helping settle trade conflicts between countries.

Additional Knowledge:

• Headquarters: Geneva, Switzerland.
• India is a founding member of WTO.
• WTO promotes the principle of Most Favoured Nation (MFN) and National Treatment, ensuring non-discrimination in trade.