Social Science (087) — AI-generated practice question

WTO was started at the initiative of developed countries, whose stated aim is to promote free trade by removing all barriers. However, in practice, developed countries have not followed these rules themselves.

While WTO rules forced developing countries like India to remove trade barriers, developed countries such as the USA continued to give massive subsidies to their farmers. US farmers, who contribute only 1% to GDP, receive huge government payments, allowing them to sell farm products at abnormally low prices in other countries' markets. This harms farmers in developing countries.

Developing countries thus argue that developed nations demand liberalisation from others while protecting their own producers — making trade neither free nor fair.

Source: World Trade Organisation, Chapter 4

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• The examiner expects two clear points: (1) WTO rules forced developing countries to liberalise, but (2) developed countries retained subsidies/barriers — especially the US farm subsidy example.
• Mentioning the US agriculture subsidy (1% GDP, 0.5% employment yet massive support) is key for full marks.
• Don't just define WTO — the question asks specifically about unfair practices, so focus there.
• ~75 words is ideal for 3 marks.