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: Recall the role of institutions.
- WTO → World Trade Organization → enforces trade rules, ensures free and fair trade.
- GATT → Predecessor of WTO.
- UNCTAD → Promotes trade/development for developing countries.
- SAARC → Regional cooperation in South Asia.
- When a major country raises tariffs unilaterally, it undermines WTO principles of trade liberalization.