Jasvin ThinksPracticeMock testsCurrent affairs

UPSC Prelims 2000 Q39: Indian Economy – International Trade & WTO

UPSC Prelims 2000, General Studies Paper I · Indian Economy

Consider the following statements: The Ministerial Meeting of the WTO held in December 1999 was unsuccessful because it attempted to link trade with 1. Labour related issues. 2. Environment related issues. 3. Terrorism related issues. 4. Debt related issues. Which of these statements are correct?
  1. (a) 1, 3 and 4
  2. (b) 1 and 2
  3. (c) 2 and 3
  4. (d) 2 and 4

Answer: (b) 1 and 2

Explanation

Why the WTO's Seattle meeting failed in 1999

IssueRaised at Seattle?
1. Labour standardsYes — US push to link trade with core labour standards
2. EnvironmentYes — trade-environment link resisted by developing countries
3. TerrorismNo
4. DebtNo

The Third WTO Ministerial Conference at Seattle (30 November-3 December 1999) ended without launching a new round.

A central reason was the attempt, led by the United States and the EU, to link trade rules with labour standards and environmental standards.

India and most developing countries saw these as disguised protectionism, a 'social clause' that could block their exports.

Added to this were street protests and differences over agriculture.

Terrorism and debt were not on the trade agenda.

Answer: (b) 1 and 2.

Why each option is right or wrong

Key point

Seattle 1999 = 'social clause' (labour) + environment → collapse; Doha 2001 launched the round.

Remember

Seattle 1999: labour and environment links; Doha 2001: development round.

Common mistakes

Exam tip

WTO + 1999 + failed = labour and environment.

Sources

Practise UPSC Prelims PYQsTake a timed mock