WTO & Trade — Set 3
World Organizations · WTO और व्यापार · Questions 21–30 of 50
The WTO agreement that covers patents, copyrights, and trademarks is known as?
Correct Answer: B. TRIPS
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) sets minimum standards for IP protection. It covers a wide range of areas including geographical indications and industrial designs. This agreement links the protection of ideas and innovations with the international trading system.
The 'Information Technology Agreement' (ITA), aimed at eliminating tariffs on IT products, was concluded at which Ministerial Conference?
Correct Answer: C. Singapore 1996
The ITA was concluded at the first WTO Ministerial Conference held in Singapore in 1996. It committed participants to eliminate customs duties on products like computers and software. Over 80 WTO members now participate in this plurilateral agreement.
Which WTO council is responsible for overseeing the functioning of the General Agreement on Trade in Services?
Correct Answer: A. Council for Trade in Services
The Council for Trade in Services operates under the guidance of the General Council. It oversees the implementation of GATS and provides a forum for discussing service-related trade issues. There are also specific councils for goods and intellectual property.
The threshold below which agricultural subsidies are considered too small to be trade-distorting is known as the?
Correct Answer: D. De minimis level
De minimis is a legal term meaning 'of minimum importance'. In the WTO, it allows countries to provide a small amount of trade-distorting support without reduction commitments. For developed countries, this is usually 5% of the value of agricultural production.
Which GATT provision allows developed countries to give preferential trade treatment to developing countries without extending it to others?
Correct Answer: B. Enabling Clause
The Enabling Clause (1979) provides the legal basis for the Generalized System of Preferences (GSP). It allows for a permanent departure from the Most Favoured Nation principle in favour of developing nations. This helps poorer countries increase their exports to wealthier markets.
At which Ministerial Conference was the 'Trade Facilitation Agreement' (TFA) finally concluded?
Correct Answer: C. Bali 2013
The Bali Ministerial Conference in 2013 was a major breakthrough as it produced the Trade Facilitation Agreement. This was the first major new agreement for the WTO since its inception in 1995. It aims to reduce global trade costs by about 14% on average.
What is the primary objective of the WTO's 'Market Access' principle for goods?
Correct Answer: A. To lower or eliminate tariffs and non-tariff barriers
Market access refers to the conditions under which goods can enter a foreign market. The WTO works to increase market access by negotiating the reduction of customs duties and other barriers. This encourages a more open and predictable global trading environment.
The historical system of quotas that restricted textile exports from developing countries until 2005 was the?
Correct Answer: D. Multi-Fiber Arrangement
The Multi-Fiber Arrangement (MFA) allowed developed nations to impose quotas on textile and clothing imports. It was phased out over a ten-year period starting in 1995 under the WTO's Agreement on Textiles and Clothing. Since 2005, trade in textiles has been governed by normal GATT rules.
Under WTO rules, which type of subsidy is prohibited because it is specifically designed to distort international trade?
Correct Answer: B. Export subsidies
Export subsidies are prohibited because they give an unfair advantage to domestic firms in foreign markets. These are subsidies that are contingent on export performance. The WTO's SCM Agreement provides the framework for identifying and banning such measures.
The SCM Agreement in the WTO context specifically regulates which two areas?
Correct Answer: C. Subsidies and Countervailing Measures
The Agreement on Subsidies and Countervailing Measures (SCM) defines what constitutes a subsidy and sets rules for their use. It also establishes the procedures for countries to impose countervailing duties. This agreement is vital for maintaining fair competition in the trade of goods.