The recent increase in the tariffs by the USA on its trading partners undermines the institutional validity of which of the following?
Show Hint
- WTO
- GATT
- UNCTAD
- SAARC
The Correct Option is A
Solution and Explanation
Step 1: Recall the role of institutions.
- WTO → World Trade Organization → enforces trade rules, ensures free and fair trade.
- GATT → Predecessor of WTO.
- UNCTAD → Promotes trade/development for developing countries.
- SAARC → Regional cooperation in South Asia.
- When a major country raises tariffs unilaterally, it undermines WTO principles of trade liberalization.
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