Question

Consider the following with respect to international trade and select correct ones:
A. General Agreement on Tariff and Trade (GATT) came into force on 01.01.1948
B. GATT disagreed to apply principle of 'Most Favoured Nations (MFN)'
C. Dunkel draft is associated with World Trade Organisation
D. GATT was implemented to impose trade barrier in international market.
E. World Trade Organisation came into effect on 01.01.1995.

• A. A, C, E only
• B. A, B, C, E only
• C. D, E only
• D. A, B only

Hint:

Remember: GATT (1948) was an "agreement" focused on goods, while WTO (1995) is an "organization" that covers goods, services, and intellectual property.

Answer 1

The Correct Option is A

Concept: International trade is governed by historical agreements and organizations designed to reduce trade barriers and standardize rules across nations.

Step 1: Evaluate statements A, B, and D regarding GATT.
The General Agreement on Tariffs and Trade (GATT) was signed in 1947 and officially came into force on January 1, 1948[cite: 6451]. Its primary purpose was to reduce trade barriers, not impose them[cite: 6457]. Furthermore, the 'Most Favoured Nation' (MFN) principle was a cornerstone of GATT, requiring members to treat all trading partners equally[cite: 6453]. Therefore, A is correct, but B and D are incorrect.

Step 2: Evaluate statements C and E regarding WTO.
The Dunkel Draft (named after Arthur Dunkel) was the final compilation of the Uruguay Round negotiations which led to the creation of the World Trade Organisation (WTO)[cite: 6456]. The WTO officially replaced GATT and came into effect on January 1, 1995[cite: 6459]. Thus, C and E are correct.

Step 3: Conclusion.
The correct statements are A, C, and E.