WTO & Trade — Set 2

Correct Answer: A. Appellate Body

The Appellate Body hears appeals from reports issued by panels in disputes brought by WTO members. It is composed of seven individuals and can uphold, modify, or reverse the legal findings of a panel. Its decisions are usually final once adopted by the Dispute Settlement Body.

Correct Answer: D. Nairobi

The Nairobi Ministerial Conference was significant for the historic decision to abolish agricultural export subsidies. This move was especially beneficial for developing and least-developed countries. It represented a major step in the long-term reform of agricultural trade rules.

Correct Answer: B. A provision protecting certain subsidies from being challenged

The Peace Clause restricted WTO members from challenging certain agricultural subsidies under other agreements. It was intended to last for a specific period during the implementation of agricultural reforms. At the Bali Ministerial, a temporary peace clause was agreed upon for public stockholding programs.

Correct Answer: C. Four

GATS identifies four modes of service supply: cross-border supply, consumption abroad, commercial presence, and presence of natural persons. These modes categorize how services are traded internationally between countries. For example, tourism falls under 'consumption abroad' while banking branches fall under 'commercial presence'.

Correct Answer: A. Doha Round

The Doha Development Round focuses specifically on the needs and interests of developing countries. It covers a wide range of issues including agriculture, services, and intellectual property. Progress has been slow due to disagreements between developed and developing nations.

Correct Answer: D. Blue Box

The Blue Box contains subsidies that would normally be in the Amber Box but have conditions that limit production. There is currently no limit on spending for Blue Box subsidies in the WTO. They are considered less trade-distorting than Amber Box measures.

Correct Answer: B. TRIMS

The Trade-Related Investment Measures (TRIMS) Agreement applies to measures that affect trade in goods. It prohibits requirements like local content rules or trade balancing requirements. This ensures that foreign investments are not used as a barrier to international trade.

Correct Answer: C. Rules of Origin

Rules of Origin are essential for determining the nationality of a product in international trade. They help customs authorities decide which duties or restrictions apply to a specific shipment. This is particularly important in the context of free trade agreements and preferential duties.

Correct Answer: A. Special and Differential Treatment

Special and Differential Treatment (S&DT) gives developing countries longer timeframes to implement agreements. It also allows them more flexibility in trade policy to meet their development goals. This principle acknowledges the different economic capacities of member nations.

Correct Answer: D. Trade Facilitation Agreement

The Trade Facilitation Agreement (TFA) was the first multilateral agreement concluded since the WTO's creation. It focuses on reducing 'red tape' at borders to lower trade costs and increase efficiency. It contains provisions for technical assistance to help developing countries implement the rules.