KSLU Solved Question Papers
International Trade Economics
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 10
2018 Jun Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 10 International Trade Economics 2018 Jun Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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Contents
The questions below are the paper as Karnataka State Law University set it at the 2018 Jun examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2018 Jun examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 100 · 13 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Explain the scope and objectives of World Trade Organization (WTO).[16]
Answer
For full marks, cover: the WTO's founding text (the Marrakesh Agreement, signed 15 April 1994, in force 1 January 1995); the objectives, grouped and explained: the welfare aims, growth of production and trade in goods and services, sustainable development, a fair share for developing countries, and the systemic aim of an "integrated, more viable and durable" trading system; the two means the Preamble names; objectives stated in particular agreements (DSU Article 3.2; TRIPS Article 7; the Agreement on Agriculture); the legal weight of the objectives (United States: Shrimp); how far they have been met; the scope, in six dimensions: subject matter (Article II:1 and the Annexes), legal reach (Articles II:2 to II:4, XVI:3, XVI:4), membership (Article XII), the measures covered, time (Brazil: Desiccated Coconut) and the limits and frontier (what lies outside; United States: Gambling; the newer agreements); a table; a conclusion.
The founding text
The World Trade Organization was established by the Marrakesh Agreement Establishing the World Trade Organization, signed on 15 April 1994. It came into force on 1 January 1995. Its objectives are set out mainly in the Preamble. Its scope is fixed by Article II and the agreements annexed to it.
Part A: The objectives
The Preamble's aims fall into five groups.
1. Welfare aims. Trade relations are to aim at raising standards of living and ensuring full employment. They are also to aim at a large and steadily growing volume of real income and effective demand. Trade is treated as a means to human welfare, not an end in itself.
2. Growth of production and trade, now including services. Members seek to expand the production of and trade in goods and services. The word "services" is new. The GATT Preamble of 1947 spoke only of goods, and the change reflects the GATS.
3. Sustainable development. Growth must allow for the optimal use of the world's resources in accordance with sustainable development. Members seek to protect and preserve the environment, in ways consistent with their different levels of development. This aim, too, was added in 1994.
4. A fair share for developing countries. The Preamble recognises the need for positive efforts for developing countries, especially the least developed. They are to secure a share in trade growth that matches their development needs. It shows in special and differential treatment across the agreements: longer transition periods, lower commitments and technical help.
5. The systemic aim. Members resolve to develop an "integrated, more viable and durable multilateral trading system". It is to bring together GATT, the results of earlier liberalisation and the whole Uruguay Round. They are also determined to preserve the system's basic principles. This aim explains why the WTO was created as an organisation, not merely as a new set of rules.
The means. The Preamble names two instruments: reciprocal and mutually advantageous arrangements to reduce tariffs and other barriers substantially, and the elimination of discriminatory treatment. From them come the core rules of bound tariffs, most favoured nation treatment and national treatment.
Objectives in particular agreements.
- Dispute settlement aims at security and predictability in the trading system (DSU Article 3.2).
- TRIPS Article 7 aims at the promotion of innovation and the transfer and dissemination of technology, to the mutual advantage of producers and users.
- The Agreement on Agriculture aims at a fair and market-oriented agricultural trading system.
The legal weight of the objectives. The Preamble guides how the agreements are read.
United States: Shrimp (WT/DS58/AB/R, adopted 6 November 1998). India and three other Asian countries challenged a US import ban on shrimp caught without turtle-protection devices. The Appellate Body drew on the Preamble's commitment to sustainable development. It held that sea turtles were "exhaustible natural resources" under Article XX(g). The ban nonetheless failed, because the US applied it with arbitrary and unjustifiable discrimination.
How far the objectives have been met. World trade has grown greatly since 1995. Bound tariffs and the dispute system have made trade more predictable, and many developing countries, India among them, have raised their share. Against that, the Doha Round launched in 2001 has not been concluded. Agricultural support remains high. The Appellate Body has been unable to sit since December 2019, weakening the aim of security and predictability.
Part B: The scope
1. Subject matter (Article II:1). The WTO is the common institutional framework for trade relations among its members in matters covered by the annexed agreements.
| Annex | What it covers |
|---|---|
| 1A | Trade in goods: GATT 1994 and the agreements on agriculture, SPS, TBT, TRIMs, anti-dumping, valuation, preshipment inspection, rules of origin, import licensing, subsidies and safeguards; Trade Facilitation (2017) and Fisheries Subsidies (2025) added later |
| 1B | Trade in services: the GATS and members' schedules |
| 1C | Intellectual property: TRIPS |
| 2 | Dispute settlement: the DSU |
| Annex | What it covers |
|---|---|
| 3 | Review of trade policies: the TPRM |
| 4 | Plurilateral agreements, such as Government Procurement |
2. Legal reach.
- The single undertaking (Article II:2). The agreements in Annexes 1, 2 and 3 are integral parts of the Marrakesh Agreement and bind all members.
- Plurilaterals (Article II:3). Annex 4 agreements bind only members that accept them.
- A distinct GATT (Article II:4). GATT 1994 is legally distinct from GATT 1947.
- Hierarchy (Article XVI:3). If the Marrakesh Agreement conflicts with an annexed agreement, the Marrakesh Agreement prevails.
- Domestic law (Article XVI:4). Each member must bring its laws, regulations and administrative procedures into conformity with its obligations.
3. Membership (Article XII). Any State or separate customs territory with full autonomy in its external commercial relations may accede, on terms agreed with the WTO. Accession is approved by a two-thirds majority of members. Membership reached 166 in August 2024.
4. The measures covered. The agreements discipline measures of members' governments, at every level. Purely private conduct is outside them, unless it can be attributed to the State.
5. Time. The agreements govern measures and events from 1 January 1995. Earlier matters remain under the old law.
Brazil: Desiccated Coconut (WT/DS22/AB/R, adopted 20 March 1997). The Philippines challenged a Brazilian countervailing duty imposed after an investigation begun before 1995. The Appellate Body held that the WTO Agreement on Subsidies did not apply to that investigation. The Tokyo Round code governed it.
6. Limits and frontier.
What lies outside. No WTO agreement deals with labour standards, competition law or the protection of foreign investment. Exchange rates and monetary matters belong to the IMF. Each agreement also carries exceptions, such as Articles XX and XXI of GATT, that leave room for members' public policy.
Scope set by commitments. In services, a member's obligations reach only as far as its schedule. A sector it has not listed is outside its market access and national treatment commitments.
United States: Gambling (WT/DS285/AB/R, adopted 20 April 2005). Antigua and Barbuda challenged US laws barring cross-border gambling services. The Appellate Body held that the US schedule's entry for "other recreational services" included gambling. A schedule means what its words say. The US measures fell within the public morals exception but failed its chapeau.
The frontier. The scope grows by negotiation. Trade facilitation entered in 2017 and fisheries subsidies in 2025. At the Fourteenth Ministerial Conference in March 2026, more than sixty members agreed to apply an electronic commerce agreement among themselves. The Investment Facilitation for Development Agreement has not been added to Annex 4.
Summary table
| Aspect | Position | Source |
|---|---|---|
| Welfare aims | Living standards, employment, real income | Preamble |
| Trade aim | Goods and services | Preamble |
| Environment | Sustainable development | Preamble; United States: Shrimp |
| Development | Positive efforts for developing countries | Preamble |
| Aspect | Position | Source |
|---|---|---|
| System | Integrated, viable, durable | Preamble; DSU 3.2 |
| Subject matter | Goods, services, intellectual property, disputes, policy review | Article II:1; Annexes |
| Binding effect | Single undertaking; plurilaterals by choice | Article II:2, II:3 |
| Members | States and separate customs territories | Article XII |
| Time | From 1 January 1995 | Brazil: Desiccated Coconut |
Conclusion. The WTO's objectives, in the Marrakesh Preamble, are higher living standards, employment and growth through expanding trade in goods and services. They also include sustainable development and a fair share for developing countries, pursued through reciprocal liberalisation and non-discrimination. Its scope covers goods, services, intellectual property, dispute settlement and policy review, binding all members as a single undertaking. It extends to States and separate customs territories and runs from 1995. Labour, competition and investment protection lie outside it. The scope widens only by agreement, as the newer agreements show.
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