Which among the following statements is/are true with regard to WTO membership ? 1. All WTO members automatically receive the most favoured nation status 2. Over 75% of WTO members are from developing countries. WTO membership allows them access to develo

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Q: 78 (NDA-I/2011)
Which among the following statements is/are true with regard to WTO membership ?
1. All WTO members automatically receive the ‘most favoured nation’ status
2. Over 75% of WTO members are from developing countries. WTO membership allows them access to developed markets at the lower tariff
Select the correct answer using the code given below :

question_subject: 

General Knowledge

question_exam: 

NDA-I

stats: 

0,18,48,11,27,18,10

keywords: 

{'wto members': [0, 0, 0, 1], 'wto membership': [0, 0, 0, 1], 'lower tariff': [0, 0, 0, 1], 'countries': [1, 0, 2, 6], 'access': [0, 0, 0, 2]}

The correct answer is option 3, which states that both statements 1 and 2 are true with regard to WTO membership.

Statement 1: "All WTO members automatically receive the `most favoured nation` status." This means that once a country becomes a member of the World Trade Organization (WTO), it is entitled to receive the same trading privileges and benefits that any other member country would receive. This includes the "most favoured nation" (MFN) status, which ensures that WTO members treat each other as well as they treat their most favoured trading partner. Therefore, statement 1 is true.

Statement 2: "Over 75% of WTO members are from developing countries. WTO membership allows them access to developed markets at lower tariffs." This statement highlights the fact that a significant majority of WTO members come from developing countries. By becoming a WTO member, these countries gain access to developed markets on more favorable terms, such as lower tariffs and trade barriers. This helps to promote economic growth and development in these countries. Therefore, statement 2 is also true.

In conclusion, both statements 1 and 2 accurately describe the benefits and privileges that come with WTO membership.