Which of the statement is incorrect?

Question

Accepted Answer

The correct option is 3:
The statement, "There are 160 members representing 70 percent of World Trade in WTO," is incorrect because it contains factually inaccurate figures regarding the World Trade Organization's global coverage. While the WTO membership number has consistently grown since its establishment, the figure of 160 is outdated and the percentage of global trade represented is significantly higher than 70 percent. The WTO currently has 166 members (as of 2024), and these members collectively represent approximately 98% of total global trade and global GDP. Therefore, the statement's claim that 160 members represent only 70 percent of World Trade is the error, making this the incorrect statement in the question.

The incorrect option is 1:
The statement, "WTO was established in January, 1st, 1995," is factually correct. The World Trade Organization officially began operations on January 1, 1995, succeeding the General Agreement on Tariffs and Trade (GATT), which had regulated international trade since 1948. This date marks the transition from the ad hoc, provisional structure of GATT to a permanent, institutionalized international organization. The establishment date is a cornerstone fact regarding the WTO's history.

The incorrect option is 2:
The statement, "It was created by Uruguay Round Negotiations (1986-94)," is correct. The WTO was the result of the multilateral trade talks known as the Uruguay Round, which took place from 1986 to 1994. These negotiations were the most comprehensive in the history of GATT and concluded with the signing of the Marrakesh Agreement in April 1994, which formally established the WTO. This round expanded global trade rules to new areas like services (GATS) and intellectual property (TRIPS), laying the foundation for the organization.

The incorrect option is 4:
The statement, "WTO settles trade disputes between its members and it supports the need of developing countries," is correct. The WTO's Dispute Settlement Mechanism (DSM) is one of its most important functions, providing a framework to resolve trade disputes between member countries according to global trade rules. Furthermore, a core principle of the WTO is Special and Differential Treatment (S\&D) provisions, which are trade rules designed specifically to support the needs of developing and least-developed countries by giving them more flexibility and longer transition periods to implement agreements, thereby supporting their integration into the global trading system.