UPSC Prelims Practice Questions — The World Trade Organization is flailing

Q1. In the context of the World Trade Organization, the 'Marrakesh Agreement' is best described as which one of the following?

  • A. The treaty, signed in 1994, that established the WTO and entered into force on 1 January 1995
  • B. The 1947 agreement that first created the multilateral tariff-reduction framework known as the GATT
  • C. The 1998 decision instituting the moratorium on customs duties on electronic transmissions
  • D. The 2022 agreement prohibiting subsidies for illegal, unreported and unregulated fishing

Q2. Within the Government of India, which one of the following is the nodal ministry responsible for matters relating to India's engagement with the World Trade Organization?

  • A. Ministry of Commerce and Industry (Department of Commerce)
  • B. Ministry of External Affairs
  • C. Ministry of Finance (Department of Economic Affairs)
  • D. Ministry of Fisheries, Animal Husbandry and Dairying

Q3. The WTO Secretariat, which serviced MC14 and framed its draft 'Yaoundé package', is headed by which one of the following office-holders?

  • A. The Director-General
  • B. The Chair of the Ministerial Conference
  • C. The Chair of the General Council
  • D. The Chair of the Dispute Settlement Body

Q4. With reference to the WTO moratorium on customs duties on electronic transmissions, consider the following: 1. It was first agreed by WTO members in 1998. 2. At MC13 (Abu Dhabi, 2024) it was extended until MC14 or 31 March 2026, whichever was earlier. 3. At MC14 the proposed extension to 31 December 2030 failed and the moratorium lapsed for the first time. 4. The moratorium permanently and irrevocably prohibits members from ever imposing customs duties on electronic transmissions. Which of the above is NOT correct?

  1. It was first agreed by WTO members in 1998.
  2. At MC13 (Abu Dhabi, 2024) it was extended until MC14 or 31 March 2026, whichever was earlier.
  3. At MC14 the proposed extension to 31 December 2030 failed and the moratorium lapsed for the first time.
  4. The moratorium permanently and irrevocably prohibits members from ever imposing customs duties on electronic transmissions.
  • A. 1 only
  • B. 4 only
  • C. 2 and 3
  • D. 1 and 4

Q5. The non-renewal of the e-commerce customs duty moratorium at MC14 (2026) was widely regarded as historic primarily because it marked which one of the following?

  • A. The first lapse of the moratorium since it was first instituted in 1998
  • B. The first time the moratorium had ever been extended at a Ministerial Conference
  • C. The first time the WTO formally imposed customs duties on all categories of digital goods
  • D. The first Ministerial Conference at which electronic commerce was ever discussed

Q6. In India, financial support to the fisheries sector — the backdrop to India's negotiating stance on fisheries subsidies at the WTO — is primarily channelled through which one of the following flagship schemes?

  • A. Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  • B. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
  • C. Pradhan Mantri Fasal Bima Yojana (PMFBY)
  • D. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

Q7. The WTO Agreement on Fisheries Subsidies, which entered into force in September 2025, is best described as an agreement that does which one of the following?

  • A. Prohibits subsidies for illegal, unreported and unregulated (IUU) fishing and for fishing overfished stocks
  • B. Guarantees a minimum support price to small-scale fishers in developing countries
  • C. Fixes binding global catch quotas for every commercially exploited fish species
  • D. Establishes a common external tariff on imported fish and fishery products

Q8. Under the GATT/WTO framework, the provision that permits members to form customs unions and free-trade areas as a departure from the Most-Favoured-Nation obligation is contained in which one of the following?

  • A. Article XXIV of GATT
  • B. Article I of GATT
  • C. Article III of GATT
  • D. Article XXV of GATT

Q9. With reference to the WTO dispute settlement system, consider the following: 1. The Appellate Body has been unable to hear new appeals since December 2019 because the United States blocked appointments to fill its vacancies. 2. The Multi-Party Interim Appeal Arbitration Arrangement (MPIA) is based on Article 25 of the Dispute Settlement Understanding. 3. The MPIA has been operational since April 2020. 4. Both the United States and India are participants in the MPIA. Which of the above is NOT correct?

  1. The Appellate Body has been unable to hear new appeals since December 2019 because the United States blocked appointments to fill its vacancies.
  2. The Multi-Party Interim Appeal Arbitration Arrangement (MPIA) is based on Article 25 of the Dispute Settlement Understanding.
  3. The MPIA has been operational since April 2020.
  4. Both the United States and India are participants in the MPIA.
  • A. 1 only
  • B. 4 only
  • C. 3 and 4
  • D. 2 only

Q10. India, a founding member of the WTO since 1995, negotiated the Yaoundé package at MC14 (2026) alongside the organisation's full membership. As of MC14, how many members does the WTO have?

  • A. 150
  • B. 164
  • C. 166
  • D. 123

Q11. Which one of the following correctly identifies the first WTO Ministerial Conference to be hosted on the African continent?

  • A. MC10, Nairobi (Kenya), 2015
  • B. MC14, Yaoundé (Cameroon), 2026
  • C. MC4, Doha (Qatar), 2001
  • D. MC13, Abu Dhabi (UAE), 2024