The World Trade Organization (WTO)

In 1947, 29 countries formed an agreement known as ______.

The GATT was based on the following principles

• Non-discrimination

• Elimination of non-tariff trade barriers

• Consultations to resolve trade disputes

A member from WTO cannot set the trade policy which discriminate between its trading partner. It can impose a higher tariff on imports from one country and a lower one on imports from another country.

• True

• False

An agreement was reached to replace the GATT by a new international trade body. This body was established in January 1995, and was called _____________.

WTO helps in the implementation and administration of international trade agreements. What is this function?

• It facilitates co-operation with other international organisations

• It monitors national trade policies

• It administers WTO trade agreements

• It provides a forum for trade negotiations

• It handles trade disputes

When WTO members disagree on trade issues, the WTO makes decisions to resolve the differences on the basis of the legal foundations of the trade agreement. What is this function?

• It facilitates co-operation with other international organisations

• It monitors national trade policies

• It administers WTO trade agreements

• It provides a forum for trade negotiations

• It handles trade disputes

The assistance provided to developing countries concerns trade-related issues arising from WTO trade agreements. What is this function?

• It facilitates co-operation with other international organisations

• It monitors national trade policies

• It provides technical assistance and training for developing countries

• It provides a forum for trade negotiations

• It handles trade disputes

The WTO carries out periodic reviews of its members' national trade policies. Members are required to notify the WTO of any changes in trade policy. What is this function?

• It facilitates co-operation with other international organisations

• It monitors national trade policies

• It provides technical assistance and training for developing countries

• It provides a forum for trade negotiations

• It handles trade disputes

The WTO cooperates with World Bank in order to facilitate coordination of global policies. What is this function?

• It facilitates co-operation with other international organisations

• It monitors national trade policies

• It provides technical assistance and training for developing countries

• It provides a forum for trade negotiations

• It handles trade disputes

Developing countries should be offered flexibility with respect to lowering their trade barriers, more time to adjust to change and special privileges. What principle is this?

• Non-discrimination

• Free trade

• Predictability

• Promotion of fair competition

• Development and economic reform should be encouraged