WTO & Trade — Set 1
World Organizations · WTO और व्यापार · Questions 1–10 of 50
Which WTO term refers to duties imposed on imported goods to offset subsidies provided by the exporting country's government?
Correct Answer: A. Countervailing duties
Countervailing duties are specific tariffs used to neutralize the negative effects of subsidies in the exporting country. They help restore fair competition between domestic and imported products. These measures are governed by the Agreement on Subsidies and Countervailing Measures.
In WTO terminology, which 'box' includes agricultural subsidies that are considered trade-distorting and must be reduced?
Correct Answer: C. Amber Box
The Amber Box contains all domestic support measures considered to distort production and trade. Member nations are required to limit these subsidies to a specific 'de minimis' level. Examples include market price supports and direct production-linked payments.
What is the practice of exporting a product at a price lower than the price it normally charges in its own home market called?
Correct Answer: A. Dumping
Dumping occurs when a company exports a product at a lower price than its normal value. The WTO allows countries to take action against dumping if it causes material injury to the domestic industry. Anti-dumping duties are the common corrective measure used in such cases.
Which WTO agreement deals with technical regulations and standards to ensure they do not create unnecessary obstacles to trade?
Correct Answer: D. TBT Agreement
The Technical Barriers to Trade (TBT) Agreement ensures that technical regulations and standards are non-discriminatory. It encourages countries to use international standards wherever possible to facilitate smoother trade. This helps prevent countries from using technical rules as disguised protectionism.
A trade agreement that is signed by only a subset of WTO members rather than all members is known as a?
Correct Answer: A. Plurilateral agreement
Plurilateral agreements involve only those WTO members who choose to accept the specific terms. Unlike multilateral agreements, they do not create obligations for the entire WTO membership. The Information Technology Agreement is a well-known example of such an arrangement.
The principle that requires a country to treat imported and locally-produced goods equally is called?
Correct Answer: C. National Treatment
National Treatment ensures that once goods have entered the market, they are treated no less favourably than domestic goods. This principle prevents internal taxes or regulations from being used to favour local products. It is one of the foundation stones of the WTO trading system.
Which of the following is NOT one of the three main pillars of the WTO Agreement on Agriculture?
Correct Answer: D. Intellectual Property
The Agreement on Agriculture is built on three pillars: market access, domestic support, and export competition. Intellectual property is handled under a separate agreement known as TRIPS. These pillars aim to reform trade in the agricultural sector and make it fairer.
Which WTO agreement sets out the basic rules for food safety and animal and plant health standards?
Correct Answer: D. SPS
The Sanitary and Phytosanitary (SPS) Agreement allows countries to set their own safety standards based on science. These regulations must be applied only to the extent necessary to protect human, animal, or plant life. It prevents countries from using health standards as a pretext for trade barriers.
Under the WTO, what are the specific 'safety valve' measures that allow a country to temporarily restrict imports of a product to protect a domestic industry?
Correct Answer: B. Safeguard measures
Safeguard measures are temporary restrictions on imports used when a sudden surge in imports causes serious injury. Unlike anti-dumping, these measures apply to all imports of the product regardless of the source. They are intended to give the domestic industry time to adjust to increased competition.
Which WTO mechanism involves a periodic peer review of the trade policies of individual member countries?
Correct Answer: B. Trade Policy Review Mechanism
The Trade Policy Review Mechanism (TPRM) promotes transparency by examining the trade policies of members. All WTO members are subject to review, with the frequency depending on their share of world trade. This process helps other members understand the trade environment of the country being reviewed.