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🎖️ Defence📈 Economics

Which of the following statements is not true?

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Which of the following statements is not true?
aThe General Agreement on Tariffs and Trade (GATT) had regulated global trade since 1947.
bGATT was replaced by the World Trade Organisation (WTO) in 1995.
cThe Most Favoured Nation principle under GATT provided that preferential trading agreements reached with one country should be extended to other countries.
dThe WTO has been able to cover in its agreements the agriculture and textile sectors which are the principal concerns for the Least Developed Countries (LDCs).
✓ Correct answer: c) The Most Favoured Nation principle under GATT provided that preferential trading agreements reached with one country should be extended to other countries.
ExplanationGeneral Agreement on Tariffs and Trade (GATT) and World Trade Organisation(WTO): The General Agreement on Tariffs and Trade (GATT) was signed by 23 countries in October 1947 after World War II and entered into force on January 1, 1948. The purpose of the GATT was to facilitate international trade.The GATT was held eight times in total from April 1947 to December 1993, each with great success and results.In 1995, the GATT was merged into the World Trade Organization (WTO) and the WTO was enlarged.All signatory members of the GATT should be treated equally with all other members.This is known as Most Favored Nation and has carried over to the WTO.The practical result of this is that when a country negotiates a tariff reduction with another country (usually a major trading partner), the same reduction automatically applies to all GATT signatories.The Agreement on Agriculture (AoA), a WTO treaty negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), was formally ratified in 1994 in Marrakech, Morocco.It came into effect in 1995. Preferential Trade Agreement (PTA) term used in the WTO for preferential trade such as: reduced or zero tariffs that Member States can unilaterally offer to their trading partners.This includes the Generalized System of Preferences, under which developed countries grant preferential tariffs on imports from developing countries. | | Defence It includes non-reciprocal schemes granted by the General Council.Member States are therefore exempt from the application of the Most Favored Nation (MFN).Hence, the correct answer is option (C).
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