UPSC Prelims 2000·GS1·economy·open economy

Consider the following statements: The Ministerial Meeting of the WTO held in December 1999 was unsuccessful because it attempted to link trade with I. labour related issues. II. environment related issues. III. terrorism related issues. IV. debt related issues. Which of these statements are correct?

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  1. AI, III and IV
  2. BI and IICorrect
  3. CII and III
  4. DII and IV

Explanation

The Ministerial Meeting of the World Trade Organization held in Seattle in 1999 is widely known for its failure to launch a new round of trade negotiations. This failure occurred primarily due to a deep divide between developed and developing nations. Statement I is correct because the United States and other developed nations pushed to include core labor standards in the WTO agenda. Developing countries, led by nations like India, strongly opposed this, fearing it would be used as a protectionist tool to undermine their competitive advantage of low cost labor. Statement II is correct because developed nations also sought to link trade with environmental standards. Developing nations viewed this as green protectionism that would create unfair barriers to their exports. Statements III and IV are incorrect because terrorism and debt related issues were not the primary points of contention or formal agenda links that led to the collapse of the 1999 Seattle talks. Therefore, the correct combination is I and II.
economy: Consider the following statements: The Ministerial Meeting of the WTO held in December 1999 was unsuccessful because it

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