Which two of the following are the functions of WTO?

(A) To facilitate the implementation, administration and operation of trade agreements

(B) To carry out periodic reviews of the trade policies of its member countries

(C) To assist in the establishment of a multilateral system of payments

(D) To promote international monetary cooperation

Choose the correct option from the following:

Correct option is D

1. (A) To facilitate the implementation, administration, and operation of trade agreements → True: One of the core functions of the WTO is to oversee the implementation of trade agreements among its member nations, ensuring smooth and fair operation of trade rules and dispute resolution mechanisms.
2. (B) To carry out periodic reviews of the trade policies of its member countries → True: The WTO monitors trade policies through its Trade Policy Review Mechanism (TPRM). This process ensures transparency and helps member countries understand and improve their trade practices.
3. (C) To assist in the establishment of a multilateral system of payments → False: This function is under the jurisdiction of the International Monetary Fund (IMF), not the WTO. The WTO deals with trade and not with payment systems or currencies.
4. (D) To promote international monetary cooperation → False: This is another function of the IMF, which is responsible for monetary cooperation and exchange rate stability, not the WTO.
Information Booster:
1. Key Functions of the WTO:
· Administering Trade Agreements: Ensuring trade agreements are properly implemented and operated by member nations.
· Monitoring Trade Policies: Conducting periodic reviews of member states' trade policies for compliance and transparency.
· Dispute Settlement: Resolving trade disputes between countries.
· Capacity Building: Assisting developing countries through technical support and training.
· Facilitating Trade Negotiations: Acting as a platform for members to negotiate new trade agreements.
2. Trade Policy Review Mechanism (TPRM):
· Established during the Uruguay Round of negotiations, it helps members improve their policies by making trade measures more transparent.
Additional Knowledge:
1. Role of IMF vs. WTO:
· The IMF focuses on global financial stability, exchange rates, and balance of payments, while the WTO is concerned with the rules of international trade.
· For example, the IMF would assist countries in managing currency crises, while the WTO would resolve disputes over tariffs or trade barriers.
2. Structure of the WTO:
· Ministerial Conference: The highest decision-making body.
· General Council: Oversees daily operations, including trade policy reviews and dispute settlement.
Secretariat: Provides technical and administrative support.