UPSC Prelims 2000 Q39: Indian Economy – International Trade & WTO
- (a) 1, 3 and 4
- (b) 1 and 2
- (c) 2 and 3
- (d) 2 and 4
Answer: (b) 1 and 2
Explanation
Why the WTO's Seattle meeting failed in 1999
| Issue | Raised at Seattle? |
|---|---|
| 1. Labour standards | Yes — US push to link trade with core labour standards |
| 2. Environment | Yes — trade-environment link resisted by developing countries |
| 3. Terrorism | No |
| 4. Debt | No |
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
- (a) Incorrect. Terrorism and debt were not issues at Seattle.
- (b) CORRECT. Labour and environment linkages divided the meeting.
- (c) Incorrect. Terrorism had nothing to do with the Seattle talks.
- (d) Incorrect. Debt was not on the WTO agenda; labour was.
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
- Thinking debt relief was a WTO subject; it belongs to the IMF and World Bank.
- Including terrorism because of later events.
- Confusing Seattle (1999) with Cancún (2003), which collapsed over the Singapore issues.
Exam tip
WTO + 1999 + failed = labour and environment.
Sources
- World Trade Organization — The Third WTO Ministerial Conference, Seattle 1999 (wto.org)
- Ministry of Finance — Economic Survey 1999-2000 (indiabudget.gov.in)