Free Trade Agreement MCQ

Question 1

Consider the following statements:
1. Australia committed an annual quota of 1,800 for Indian yoga teachers and chefs under ECTA.
2. Post-study work visa availability for Indian students in Australia was indicated for 18 months to 4 years.
3. India agreed for the first time to negative listing immediately from the date of ECTA's entry into force.
4. Australia made commitments in around 135 service sub-sectors, with MFN status in around 120 sub-sectors.
Which of the statements given above are correct?

Accepted Answer

Statements 1, 2 and 4 are true. Statement 3 is false because PIB says India agreed to negative listing after five years of the agreement coming into force, not immediately.

Question 2

Consider the following statements about free trade agreements under the WTO framework:
1. Article XXIV of GATT provides for free-trade areas covering trade in goods.
2. The Enabling Clause refers to preferential trade arrangements in goods between developed country Members.
3. Article V of GATS governs RTAs in the area of trade in services.
4. A regional integration arrangement granting more favourable treatment to its parties departs from the WTO principle of non-discrimination.
Which of the statements given above are correct?

Accepted Answer

Statements 1, 3 and 4 are correct. The WTO page places goods FTAs under GATT Article XXIV, services RTAs under GATS Article V, and explains why such preferential treatment is a departure from non-discrimination. Statement 2 is false because the Enabling Clause is for preferential trade arrangements in goods between developing country Members, not developed country Members.

Question 3

Consider the following statements about the India-ASEAN Trade in Goods Agreement:
1. The agreement was signed on 13 August 2009.
2. It came into effect on 1 January 2010 in respect of India, Malaysia, Singapore and Thailand.
3. It was a bilateral agreement signed only between India and Japan.
Which of the statements given above are correct?

Accepted Answer

Statements 1 and 2 are correct: a PIB table lists the India-ASEAN Trade in Goods Agreement as signed on 13 August 2009 and effective from 1 January 2010 for India, Malaysia, Singapore and Thailand. Statement 3 is false because the cited agreement is with ASEAN members, not a bilateral India-Japan agreement.

Question 4

1. Free Trade Agreements primarily aim to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between partners.
2. In a Free Trade Agreement, partner countries must adopt one common external tariff for non-members.
3. Free Trade Agreements may cover trade in goods, trade in services, and areas such as intellectual property rights or investment.
Which of the statements given above are correct?

Accepted Answer

Statement 1 is correct: the Commerce FAQ defines FTAs around reducing or eliminating tariff and non-tariff barriers on substantial trade. Statement 2 is incorrect: in an FTA, each partner keeps its own tariff structure for non-members; a common external tariff is associated with a customs union. Statement 3 is correct: FTAs can cover goods, services, and other areas such as IPRs and investment.

Question 5

Consider the following statements about EFTA in the India-EFTA TEPA context:
1. The EFTA countries comprise Switzerland, Iceland, Norway and Liechtenstein.
2. EFTA was set up in 1975.
3. EFTA is described as an inter-governmental organisation for promoting free trade and economic integration for its four member states.
Which of the statements given above are correct?

Accepted Answer

Statements 1 and 3 are correct. Statement 2 is false because the verified corpus fact says EFTA was set up in 1960, not 1975.

Free Trade Agreement MCQ — 60 Practice Questions with Answers

Practice Questions

You've seen 5 of 60 sample questions

More questions (pack required)

Frequently Asked Questions

More Topics in Indian Economy

Monetary & Fiscal Policy

Economic Growth & Sustainable Development

Industrial Growth & Economic Reforms

Agricultural Development

Service Sector, Energy & Transport

Skill Development & Social Justice

Measurement of Development & HDI

Fiscal Federalism & Finance Commission

Power Sector

Statistical System of India

Bilateral Trade

Centralised Payment System

Atal Pension Yojana

Public Finance

Digital Governance

Payment Systems

Social Security Schemes

Financial Markets

GST Administration

Industrial Policy

GDP and Growth Forecasts

SEBI and Capital Markets

Customs Tariff

Venture Capital

Insurance & Maritime Trade

Rural Employment

International Organizations

Trade Agreements

Startup India Funding

Foreign Trade and Balance of Payments

Inflation and Growth

Inflation Statistics

Energy Security

Food Security

External Sector

Agricultural Procurement

Macroeconomic Indicators

Startup Ecosystem

Credit Guarantee

Transport Infrastructure

Civil Aviation Ministry

Power and Energy Demand

RoDTEP Scheme

Production Linked Incentive

Infrastructure

Aviation Sector

Mining

RoDTEP Export Scheme

Agriculture Markets

Agricultural Pricing

Energy Infrastructure

Agricultural Marketing

National Accounts

Energy

Direct Taxes

Highway Tolling

Mining Sector Reform

Electronic Toll Collection

Fertiliser Security

Labour Force Participation

Economy

Free Trade Agreements

NITI Aayog Trade Watch Quarterly

GDP Estimates

Digital Payments

Textile Exports

Gender Statistics

Merchandise Trade Composition

Economic Concepts and Indian Economy

Energy Demand

III. General Knowledge of World & India :

General Knowledge

Rajasthan GK

Monetary Policy