Correct Option
The correct option is 2 and 3 only.
Explanation
The World Trade Organisation (WTO) was founded in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). Its primary objective is to establish a rule-based trading regime to ensure free and fair international trade. While it includes provisions for developing nations, its core mandate is the reduction of trade barriers globally.
Statement-wise Analysis
- Statement 1 is Incorrect. The WTO advocates for global free trade and the removal of tariff and non-tariff barriers. It acts as a forum for trade negotiations and dispute settlement among all members. It is not specifically an advocacy body for the interests of the developing world; rather, it is often criticized for being dominated by the interests of developed nations like the USA and members of the European Union.
- Statement 2 is Correct. As a member of the WTO, India is committed to dismantling trade barriers to integrate with the global economy. Consequently, India has removed quantitative restrictions (QRs) on imports (such as quotas and licensing requirements) to comply with WTO commitments, shifting towards a tariff-based regime.
- Statement 3 is Correct. There is a significant critique regarding the fairness of the WTO regime. Scholars and policymakers from developing countries often argue that while they are compelled to open their markets to foreign goods, developed countries continue to protect their own markets-particularly in agriculture-through high subsidies and non-tariff barriers. This leads to a perception that the trading system is skewed against developing economies.
Key Takeaway
Key Takeaway: The WTO aims to promote multilateral trade by reducing barriers. However, a major criticism is the asymmetry in market access, where developing nations remove protections (like quantitative restrictions) while developed nations retain subsidies and barriers in sensitive sectors.