UPSC Editorials Quiz : 25 November 2025
Kartavya Desk Staff
Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.
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• Question 1 of 5 1. Question Consider the following statements about Salar de Uyuni (world’s largest salt flat), recently in news: Statement-I: Salar de Uyuni is part of the ‘lithium triangle,’ which includes Chile, Argentina, and Bolivia. Statement-II: The region contributes significantly to global lithium supply due to the extraction technologies developed there. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Solution: C Statement-I is correct as Salar de Uyuni is part of the lithium triangle, a region rich in lithium resources. However, Statement-II is incorrect since Bolivia lags in lithium extraction technologies compared to Chile and Argentina. Despite its vast reserves, limited development infrastructure restricts Bolivia’s contribution to global lithium supply. The Salar de Uyuni, the world’s largest salt flat in Bolivia, plays a pivotal role in the global energy transition due to its immense lithium reserves. This natural wonder, located in the heart of the ‘lithium triangle’ (Chile, Argentina, and Bolivia), highlights the strategic importance of salt flats in modern energy resources. About Salar de Uyuni: What It Is:Salar de Uyuni is the world’s largest salt flat, spanning 10,582 square kilometers (4,086 sq mi). It is a unique natural landscape formed by salt crusts over a rich brine pool containing significant lithium deposits. Location:Situated in the Daniel Campos Province of Potosí, southwest Bolivia, near the crest of the Andes, at an elevation of 3,656 m (11,995 ft) above sea level. Other Major Salt Flat Regions: Chile:Salar de Atacama. Argentina:Salinas Grandes. USA:Bonneville Salt Flats, Utah. Incorrect Solution: C Statement-I is correct as Salar de Uyuni is part of the lithium triangle, a region rich in lithium resources. However, Statement-II is incorrect since Bolivia lags in lithium extraction technologies compared to Chile and Argentina. Despite its vast reserves, limited development infrastructure restricts Bolivia’s contribution to global lithium supply. The Salar de Uyuni, the world’s largest salt flat in Bolivia, plays a pivotal role in the global energy transition due to its immense lithium reserves. This natural wonder, located in the heart of the ‘lithium triangle’ (Chile, Argentina, and Bolivia), highlights the strategic importance of salt flats in modern energy resources. About Salar de Uyuni: What It Is:Salar de Uyuni is the world’s largest salt flat, spanning 10,582 square kilometers (4,086 sq mi). It is a unique natural landscape formed by salt crusts over a rich brine pool containing significant lithium deposits. Location:Situated in the Daniel Campos Province of Potosí, southwest Bolivia, near the crest of the Andes, at an elevation of 3,656 m (11,995 ft) above sea level. Other Major Salt Flat Regions: Chile:Salar de Atacama. Argentina:Salinas Grandes. USA:Bonneville Salt Flats, Utah.
#### 1. Question
Consider the following statements about Salar de Uyuni (world’s largest salt flat), recently in news:
Statement-I: Salar de Uyuni is part of the ‘lithium triangle,’ which includes Chile, Argentina, and Bolivia.
Statement-II: The region contributes significantly to global lithium supply due to the extraction technologies developed there.
Which one of the following is correct in respect of the above statements?
• a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
• b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
• c) Statement-I is correct but Statement-II is incorrect
• d) Statement-I is incorrect but Statement-II is correct
Solution: C
Statement-I is correct as Salar de Uyuni is part of the lithium triangle, a region rich in lithium resources. However, Statement-II is incorrect since Bolivia lags in lithium extraction technologies compared to Chile and Argentina. Despite its vast reserves, limited development infrastructure restricts Bolivia’s contribution to global lithium supply.
The Salar de Uyuni, the world’s largest salt flat in Bolivia, plays a pivotal role in the global energy transition due to its immense lithium reserves.
This natural wonder, located in the heart of the ‘lithium triangle’ (Chile, Argentina, and Bolivia), highlights the strategic importance of salt flats in modern energy resources.
About Salar de Uyuni:
• What It Is:Salar de Uyuni is the world’s largest salt flat, spanning 10,582 square kilometers (4,086 sq mi). It is a unique natural landscape formed by salt crusts over a rich brine pool containing significant lithium deposits.
• Location:Situated in the Daniel Campos Province of Potosí, southwest Bolivia, near the crest of the Andes, at an elevation of 3,656 m (11,995 ft) above sea level.
Other Major Salt Flat Regions:
• Chile:Salar de Atacama.
• Argentina:Salinas Grandes.
• USA:Bonneville Salt Flats, Utah.
Solution: C
Statement-I is correct as Salar de Uyuni is part of the lithium triangle, a region rich in lithium resources. However, Statement-II is incorrect since Bolivia lags in lithium extraction technologies compared to Chile and Argentina. Despite its vast reserves, limited development infrastructure restricts Bolivia’s contribution to global lithium supply.
The Salar de Uyuni, the world’s largest salt flat in Bolivia, plays a pivotal role in the global energy transition due to its immense lithium reserves.
This natural wonder, located in the heart of the ‘lithium triangle’ (Chile, Argentina, and Bolivia), highlights the strategic importance of salt flats in modern energy resources.
About Salar de Uyuni:
• What It Is:Salar de Uyuni is the world’s largest salt flat, spanning 10,582 square kilometers (4,086 sq mi). It is a unique natural landscape formed by salt crusts over a rich brine pool containing significant lithium deposits.
• Location:Situated in the Daniel Campos Province of Potosí, southwest Bolivia, near the crest of the Andes, at an elevation of 3,656 m (11,995 ft) above sea level.
Other Major Salt Flat Regions:
• Chile:Salar de Atacama.
• Argentina:Salinas Grandes.
• USA:Bonneville Salt Flats, Utah.
• Question 2 of 5 2. Question Consider the following statements about the formation of salt flats: Salt flats are formed due to the deposition of volcanic ash. Salt flats expand significantly after rainfall due to water absorption. Salt flats form in areas with heavy rainfall and abundant groundwater. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: D Statement-I is incorrect as salt flats are formed by the evaporation of prehistoric lakes, not volcanic ash. Statement-II is incorrect because salt flats do not expand after rainfall; instead, they reflect the sky due to their flat surfaces. Statement-III is incorrect as salt flats typically form in arid or semi-arid regions with limited rainfall and groundwater. Formation of Salt Flats: Originates from prehistoric lakes that existed around 40,000 years ago but evaporated over time. Formed by the deposition of minerals, especially salts, left behind as water evaporates. Ridges and flat patterns result from varying depths of salty groundwater in the soil. Incorrect Solution: D Statement-I is incorrect as salt flats are formed by the evaporation of prehistoric lakes, not volcanic ash. Statement-II is incorrect because salt flats do not expand after rainfall; instead, they reflect the sky due to their flat surfaces. Statement-III is incorrect as salt flats typically form in arid or semi-arid regions with limited rainfall and groundwater. Formation of Salt Flats: Originates from prehistoric lakes that existed around 40,000 years ago but evaporated over time. Formed by the deposition of minerals, especially salts, left behind as water evaporates. Ridges and flat patterns result from varying depths of salty groundwater in the soil.
#### 2. Question
Consider the following statements about the formation of salt flats:
• Salt flats are formed due to the deposition of volcanic ash.
• Salt flats expand significantly after rainfall due to water absorption.
• Salt flats form in areas with heavy rainfall and abundant groundwater.
How many of the above statements are correct?
• (a) Only one
• (b) Only two
• (c) All three
Solution: D
Statement-I is incorrect as salt flats are formed by the evaporation of prehistoric lakes, not volcanic ash.
Statement-II is incorrect because salt flats do not expand after rainfall; instead, they reflect the sky due to their flat surfaces.
Statement-III is incorrect as salt flats typically form in arid or semi-arid regions with limited rainfall and groundwater.
Formation of Salt Flats:
• Originates from prehistoric lakes that existed around 40,000 years ago but evaporated over time.
• Formed by the deposition of minerals, especially salts, left behind as water evaporates.
• Ridges and flat patterns result from varying depths of salty groundwater in the soil.
Solution: D
Statement-I is incorrect as salt flats are formed by the evaporation of prehistoric lakes, not volcanic ash.
Statement-II is incorrect because salt flats do not expand after rainfall; instead, they reflect the sky due to their flat surfaces.
Statement-III is incorrect as salt flats typically form in arid or semi-arid regions with limited rainfall and groundwater.
Formation of Salt Flats:
• Originates from prehistoric lakes that existed around 40,000 years ago but evaporated over time.
• Formed by the deposition of minerals, especially salts, left behind as water evaporates.
• Ridges and flat patterns result from varying depths of salty groundwater in the soil.
• Question 3 of 5 3. Question Consider the following statements about manganese contamination in water: Manganese is toxic even in trace amounts. Natural erosion and sedimentation can elevate manganese levels in water. Industrial effluents are a significant source of manganese pollution in water bodies. Chronic manganese exposure is linked to neurological disorders and cancer. How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C Statement 1 is incorrect because manganese is essential in trace amounts but becomes toxic at higher concentrations. Statements 2 and 3 are correct as natural erosion and industrial effluents are key contributors to manganese contamination. Statement 4 is correct as chronic exposure is associated with neurological and carcinogenic effects. What is Manganese? Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations. WHO Limits for Manganese in Water The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO. Reasons for Manganese in water: Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater. Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources. Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table. Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water. Health Impacts of Excess Manganese in Water: Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement. Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages. Incorrect Solution: C Statement 1 is incorrect because manganese is essential in trace amounts but becomes toxic at higher concentrations. Statements 2 and 3 are correct as natural erosion and industrial effluents are key contributors to manganese contamination. Statement 4 is correct as chronic exposure is associated with neurological and carcinogenic effects. What is Manganese? Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations. WHO Limits for Manganese in Water The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO. Reasons for Manganese in water: Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater. Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources. Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table. Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water. Health Impacts of Excess Manganese in Water: Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement. Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages.
#### 3. Question
Consider the following statements about manganese contamination in water:
• Manganese is toxic even in trace amounts.
• Natural erosion and sedimentation can elevate manganese levels in water.
• Industrial effluents are a significant source of manganese pollution in water bodies.
• Chronic manganese exposure is linked to neurological disorders and cancer.
How many of the above statements are correct?
• (a) Only one
• (b) Only two
• (c) Only three
• (d) All four
Solution: C
Statement 1 is incorrect because manganese is essential in trace amounts but becomes toxic at higher concentrations.
Statements 2 and 3 are correct as natural erosion and industrial effluents are key contributors to manganese contamination.
Statement 4 is correct as chronic exposure is associated with neurological and carcinogenic effects.
• What is Manganese? Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations.
• Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations.
• WHO Limits for Manganese in Water The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO.
• The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO.
• Reasons for Manganese in water: Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater. Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources. Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table. Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water.
• Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater.
• Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources.
• Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table.
• Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water.
• Health Impacts of Excess Manganese in Water: Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement. Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages.
• Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement.
• Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages.
Solution: C
Statement 1 is incorrect because manganese is essential in trace amounts but becomes toxic at higher concentrations.
Statements 2 and 3 are correct as natural erosion and industrial effluents are key contributors to manganese contamination.
Statement 4 is correct as chronic exposure is associated with neurological and carcinogenic effects.
• What is Manganese? Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations.
• Manganese is a naturally occurring metal found in oxides, carbonates, and silicates. It is essential in trace amounts but toxic in higher concentrations.
• WHO Limits for Manganese in Water The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO.
• The permissible limit for manganese in drinking water is 100 µg/L,as recommended by WHO.
• Reasons for Manganese in water: Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater. Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources. Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table. Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water.
• Geogenic Sources:Naturally occurring manganese deposits in sedimentary and igneous rocks leach into groundwater.
• Industrial Pollution:Discharge from mining, steel, and battery industries contaminates water sources.
• Agricultural Runoff:Excessive use of fertilizers and pesticides introduces manganese into the water table.
• Erosion and Sedimentation:Natural soil erosion and sedimentation contribute to elevated manganese levels in water.
• Health Impacts of Excess Manganese in Water: Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement. Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages.
• Neurological Disorders:Overexposure can cause weakness, clumsiness, emotional instability, and difficulty in movement.
• Carcinogenesis:Chronic exposure is linked to cancer, with the study indicating higher contamination levels in advanced cancer stages.
• Question 4 of 5 4. Question Consider the following statements regarding sources of manganese contamination: Agricultural runoff contributes to manganese contamination in groundwater. Mining operations release manganese into water sources. Geogenic leaching from natural deposits is a primary cause of manganese in water. Domestic sewage is the leading source of manganese contamination. How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C Statements 1, 2, and 3 are correct as agricultural runoff, mining, and geogenic leaching are well-documented sources of manganese contamination. Statement 4 is incorrect because domestic sewage is not a significant source of manganese pollution. Incorrect Solution: C Statements 1, 2, and 3 are correct as agricultural runoff, mining, and geogenic leaching are well-documented sources of manganese contamination. Statement 4 is incorrect because domestic sewage is not a significant source of manganese pollution. Statement 1 is incorrect. Unlike the UN Security Council, the UN General Assembly (UNGA) does not have binding authority on matters related to peace and security. Its resolutions are recommendations, not mandatory obligations, and are meant to express collective opinions or encourage action, but they do not carry the force of international law for member states. Statement 2 is incorrect. The UN Charter does not explicitly mention or define the concept of Permanent Observers. This status has evolved through diplomatic practice. Entities such as the Holy See and Palestine are examples of Permanent Observers who may participate in General Assembly debates but do not have voting rights. Statement 3 is correct. For important questions, including budgetary issues, admission of new members, and questions related to peace and security, a two-thirds majority vote is required in the General Assembly. This ensures broader consensus on decisions of significant consequence.
#### 4. Question
Consider the following statements regarding sources of manganese contamination:
• Agricultural runoff contributes to manganese contamination in groundwater.
• Mining operations release manganese into water sources.
• Geogenic leaching from natural deposits is a primary cause of manganese in water.
• Domestic sewage is the leading source of manganese contamination.
How many of the above statements are correct?
• (a) Only one
• (b) Only two
• (c) Only three
• (d) All four
Solution: C
Statements 1, 2, and 3 are correct as agricultural runoff, mining, and geogenic leaching are well-documented sources of manganese contamination.
Statement 4 is incorrect because domestic sewage is not a significant source of manganese pollution.
Solution: C
Statements 1, 2, and 3 are correct as agricultural runoff, mining, and geogenic leaching are well-documented sources of manganese contamination.
Statement 4 is incorrect because domestic sewage is not a significant source of manganese pollution.
• Statement 1 is incorrect. Unlike the UN Security Council, the UN General Assembly (UNGA) does not have binding authority on matters related to peace and security. Its resolutions are recommendations, not mandatory obligations, and are meant to express collective opinions or encourage action, but they do not carry the force of international law for member states.
• Statement 2 is incorrect. The UN Charter does not explicitly mention or define the concept of Permanent Observers. This status has evolved through diplomatic practice. Entities such as the Holy See and Palestine are examples of Permanent Observers who may participate in General Assembly debates but do not have voting rights.
• Statement 3 is correct. For important questions, including budgetary issues, admission of new members, and questions related to peace and security, a two-thirds majority vote is required in the General Assembly. This ensures broader consensus on decisions of significant consequence.
• Question 5 of 5 5. Question Consider the following statements regarding the Most Favoured Nation (MFN) principle: MFN is a principle of non-discrimination ensuring equal trade treatment for WTO member nations. It was established under the Bretton Woods system post-World War II. Countries with MFN status cannot impose tariffs on goods from each other. MFN principles also apply to services and intellectual property under WTO agreements. Which of the above statements are correct? a) 1, 2, and 3 only b) 1, 2, and 4 only c) 2, 3, and 4 only d) 1 and 4 only Correct Solution: B Statement 1: Correct. MFN ensures non-discrimination and equal treatment among WTO members. Statement 2: Correct. MFN originated as part of post-war multilateral trade agreements under the Bretton Woods system. Statement 3: Incorrect. MFN does not eliminate tariffs but mandates equal tariff treatment for all WTO members. Statement 4: Correct. MFN principles extend to trade in services and intellectual property under WTO agreements. Switzerland has recently revoked India’s Most Favoured Nation (MFN) clause in Double taxation avoidance agreement status following a Supreme Court ruling in an adverse tax case involving Nestle. About Most Favoured Nation (MFN): What It Is: MFN is a principle under the World Trade Organization (WTO) that mandates non-discrimination among member countries in trade policies. Members are treated equally in terms of tariffs, quotas, and trade barriers. Designation Given By: WTO grants the MFN designation automatically to its 164 members. Features of MFN: Ensures lowest tariffs, highest import quotas, and minimal trade barriers among member countries. Aims to promote fair trade and equitable market access. Origin: Established post-World War II as a cornerstone of the multilateral trading system under the WTO framework. Exceptions: Bilateral or regional trade agreements. Special access for developing nations. Non-WTO countries like Iran or North Korea are not bound by these rules. Removal of MFN: No formal WTO procedure for suspending MFN status exists. Members are not obligated to notify the WTO when removing MFN treatment. Incorrect Solution: B Statement 1: Correct. MFN ensures non-discrimination and equal treatment among WTO members. Statement 2: Correct. MFN originated as part of post-war multilateral trade agreements under the Bretton Woods system. Statement 3: Incorrect. MFN does not eliminate tariffs but mandates equal tariff treatment for all WTO members. Statement 4: Correct. MFN principles extend to trade in services and intellectual property under WTO agreements. Switzerland has recently revoked India’s Most Favoured Nation (MFN) clause in Double taxation avoidance agreement status following a Supreme Court ruling in an adverse tax case involving Nestle. About Most Favoured Nation (MFN): What It Is: MFN is a principle under the World Trade Organization (WTO) that mandates non-discrimination among member countries in trade policies. Members are treated equally in terms of tariffs, quotas, and trade barriers. Designation Given By: WTO grants the MFN designation automatically to its 164 members. Features of MFN: Ensures lowest tariffs, highest import quotas, and minimal trade barriers among member countries. Aims to promote fair trade and equitable market access. Origin: Established post-World War II as a cornerstone of the multilateral trading system under the WTO framework. Exceptions: Bilateral or regional trade agreements. Special access for developing nations. Non-WTO countries like Iran or North Korea are not bound by these rules. Removal of MFN: No formal WTO procedure for suspending MFN status exists. Members are not obligated to notify the WTO when removing MFN treatment.
#### 5. Question
Consider the following statements regarding the Most Favoured Nation (MFN) principle:
• MFN is a principle of non-discrimination ensuring equal trade treatment for WTO member nations.
• It was established under the Bretton Woods system post-World War II.
• Countries with MFN status cannot impose tariffs on goods from each other.
• MFN principles also apply to services and intellectual property under WTO agreements.
Which of the above statements are correct?
• a) 1, 2, and 3 only
• b) 1, 2, and 4 only
• c) 2, 3, and 4 only
• d) 1 and 4 only
Solution: B
Statement 1: Correct. MFN ensures non-discrimination and equal treatment among WTO members.
Statement 2: Correct. MFN originated as part of post-war multilateral trade agreements under the Bretton Woods system.
Statement 3: Incorrect. MFN does not eliminate tariffs but mandates equal tariff treatment for all WTO members.
Statement 4: Correct. MFN principles extend to trade in services and intellectual property under WTO agreements.
Switzerland has recently revoked India’s Most Favoured Nation (MFN) clause in Double taxation avoidance agreement status following a Supreme Court ruling in an adverse tax case involving Nestle.
About Most Favoured Nation (MFN):
What It Is:
• MFN is a principle under the World Trade Organization (WTO) that mandates non-discrimination among member countries in trade policies.
• Members are treated equally in terms of tariffs, quotas, and trade barriers.
Designation Given By:
• WTO grants the MFN designation automatically to its 164 members.
Features of MFN:
• Ensures lowest tariffs, highest import quotas, and minimal trade barriers among member countries.
• Aims to promote fair trade and equitable market access.
• Established post-World War II as a cornerstone of the multilateral trading system under the WTO framework.
Exceptions:
• Bilateral or regional trade agreements.
• Special access for developing nations.
• Non-WTO countries like Iran or North Korea are not bound by these rules.
Removal of MFN:
• No formal WTO procedure for suspending MFN status exists.
• Members are not obligated to notify the WTO when removing MFN treatment.
Solution: B
Statement 1: Correct. MFN ensures non-discrimination and equal treatment among WTO members.
Statement 2: Correct. MFN originated as part of post-war multilateral trade agreements under the Bretton Woods system.
Statement 3: Incorrect. MFN does not eliminate tariffs but mandates equal tariff treatment for all WTO members.
Statement 4: Correct. MFN principles extend to trade in services and intellectual property under WTO agreements.
Switzerland has recently revoked India’s Most Favoured Nation (MFN) clause in Double taxation avoidance agreement status following a Supreme Court ruling in an adverse tax case involving Nestle.
About Most Favoured Nation (MFN):
What It Is:
• MFN is a principle under the World Trade Organization (WTO) that mandates non-discrimination among member countries in trade policies.
• Members are treated equally in terms of tariffs, quotas, and trade barriers.
Designation Given By:
• WTO grants the MFN designation automatically to its 164 members.
Features of MFN:
• Ensures lowest tariffs, highest import quotas, and minimal trade barriers among member countries.
• Aims to promote fair trade and equitable market access.
• Established post-World War II as a cornerstone of the multilateral trading system under the WTO framework.
Exceptions:
• Bilateral or regional trade agreements.
• Special access for developing nations.
• Non-WTO countries like Iran or North Korea are not bound by these rules.
Removal of MFN:
• No formal WTO procedure for suspending MFN status exists.
• Members are not obligated to notify the WTO when removing MFN treatment.
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