Question

The recent increase in the tariffs by the USA on its trading partners undermines the institutional validity of which of the following?

• A. WTO
• B. GATT
• C. UNCTAD
• D. SAARC

Hint:

WTO ensures multilateral trade agreements are respected; unilateral tariff hikes violate these agreements.

Answer 1

The Correct Option is A

Step 1: Understand the function of key institutions.
- WTO (World Trade Organization): Enforces global trade regulations, promoting open and equitable trade practices.
- GATT: The WTO's precursor.
- UNCTAD: Facilitates trade and development initiatives for developing nations.
- SAARC: Fosters regional collaboration within South Asia.
- A major nation's unilateral tariff increase weakens the WTO's dedication to trade liberalization.