Question

Given below are two statements: Assertion (A): New multilateral round on General Agreement on Trade and Tariff known as Uruguay Round was concluded in 1994. Reason (R): It led to establishment of WTO on 1 January 1995.

• A. Both A and R are correct and R is the correct explanation of A
• B. Both A and R are correct but R is not the correct explanation of A
• C. A is correct but R is not correct
• D. A is not correct but R is correct

Hint:

Uruguay Round was concluded in 1994 and WTO came into existence on 1 January 1995.

Answer 1

The Correct Option is B

Concept:
The Uruguay Round was an important round of multilateral trade negotiations under GATT. It resulted in major changes in global trade rules.

Step 1: Check Assertion (A).
The Uruguay Round was concluded in 1994. \[ A \text{ is correct} \]

Step 2: Check Reason (R).
The Uruguay Round led to the establishment of the World Trade Organization. \[ \text{WTO established on } 1 \text{ January } 1995 \] So, \[ R \text{ is correct} \]

Step 3: Check explanation.
Reason is a consequence of the Uruguay Round, but it does not directly explain why the Uruguay Round was concluded in 1994. Therefore, both statements are correct, but Reason is not the correct explanation of Assertion. \[ \therefore \text{Correct Answer is (B)} \]