How has the WTO reduced trade barriers?

How has the WTO reduced trade barriers?

• A. Average tariffs have risen by around 32% since 1995.
• B. Average tariffs have fallen by around 32% since 1995.
• C. Tariffs have remained unchanged since 1995.
• D. Tariffs have fallen by around 10% since 1995.

Answer: (B)

Tariffs have fallen by about 32% since 1995, reflecting how WTO-led liberalization works. The WTO reduces trade barriers by negotiating rounds where countries commit to lower and bind their tariff rates, and by providing a rule-based system that encourages predictable, transparent trading conditions. Over this period, these efforts have led to a substantial drop in the average tariffs applied across many goods and countries. So the idea isn’t just that barriers exist; it’s that the multilateral framework has pushed those barriers down. The other statements don’t fit because the general trend has been a reduction rather than an increase, and the decrease is larger than about 10% in the broad global average.

Tariffs have fallen by about 32% since 1995, reflecting how WTO-led liberalization works. The WTO reduces trade barriers by negotiating rounds where countries commit to lower and bind their tariff rates, and by providing a rule-based system that encourages predictable, transparent trading conditions. Over this period, these efforts have led to a substantial drop in the average tariffs applied across many goods and countries.

So the idea isn’t just that barriers exist; it’s that the multilateral framework has pushed those barriers down. The other statements don’t fit because the general trend has been a reduction rather than an increase, and the decrease is larger than about 10% in the broad global average.