MCQ
Free Trade Agreement MCQ - Practice Questions with Answers
Solve 60 Free Trade Agreement questions for RAS/RPSC preparation.
Practice questions
Q1Consider 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?
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.
Q2Consider 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?
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.
Q3Consider 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?
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.
Q41. 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?
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.
Q5Consider 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?
Statements 1 and 3 are correct. Statement 2 is false because EFTA was set up in 1960, not 1975.
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6Consider the following statements about the India-Japan CEPA: 1. It came into force on 1 August 2011. 2. It was signed between India and Japan. 3. It came into force on 1 January 2010. Which of the statements given above are correct?
71. Rules of Origin are criteria used to determine the country of origin of a product for international trade. 2. Preferential tariffs under an FTA cannot be implemented without Rules of Origin. 3. Under an FTA, a certificate of origin is issued by the importing country’s customs authority after the goods arrive. Which of the statements given above are correct?
8Consider the following statements about preferential benefits under the India-Mauritius CECPA: 1. Indian exporters could obtain preferential benefits without any Certificate of Origin. 2. Indian exporters had to obtain a Certificate of Origin from authorised Indian agencies. 3. The online application for Certificate of Origin was to be made through the Reserve Bank of India portal. Which of the statements given above are correct?
9Consider the following statements about customs unions and free-trade areas: 1. A customs union involves substitution of a single customs territory for two or more customs territories. 2. Members of a customs union apply substantially the same duties and other commerce regulations to territories outside the union. 3. A free-trade area necessarily creates one single customs territory for all its members. Which of the statements given above are correct?
10Consider the following statements: 1. WTO describes rules of origin as criteria used to define where a product was made. 2. Rules of origin matter for trade preferences as well as quotas, anti-dumping measures and countervailing duties. 3. WTO's harmonization work programme has already harmonized preferential rules of origin used in regional trade agreements. 4. Non-preferential rules of origin apply when trade is conducted on a most-favoured-nation basis. Which of the statements given above are correct?
11Consider the following statements: 1. India-South Korea CEPA came into force from 1 January 2010. 2. The India-South Korea CEPA covers trade in goods, investment, services and bilateral cooperation in other areas. 3. The conclusion of India-Japan CEPA negotiations was declared during the Prime Minister's visit to Japan on 25 October 2010. 4. Japan put 100% of its tariff lines under zero-duty category for India in the CEPA referred to in the PIB release. Which of the statements given above are correct?
12Consider the following statements about benefits and safeguards cited for the India-Australia ECTA: 1. The agreement was stated to eliminate double taxation on IT services by amending the law from 1 April. 2. The source said India's farmers and dairy sector were protected in the negotiations. 3. A separate annex on pharmaceutical products was agreed to enable fast-track approval for patented, generic and biosimilar medicines. 4. PIB stated that no post-study work visa benefit was envisaged for Indian students under the ECTA. Which of the statements given above are correct?
13Consider the following statements: 1. Under India-Australia ECTA, immediate zero-duty access covered 98.3% of tariff lines accounting for 96.4% of India's exports to Australia by value. 2. The remaining 1.7% tariff lines are to be made zero-duty lines over five years. 3. India offered zero-duty access to 90% value of products from Australia, including coal. 4. Sensitive products such as milk, wheat, sugar, iron ore, apples and walnuts were put in India's tariff-rate-quota list under ECTA. Which of the statements given above are correct?
14Consider the following statements about India-Australia ECTA tariff coverage: 1. India said Australia was offering zero-duty access to India on about 96.4 per cent of exports from day one. 2. The agreement entered into force on 29 December 2022. 3. Australia offered zero-duty access on only about 9.64 per cent of India's exports from day one. Which of the statements given above are correct?
15Consider the following statements about a free-trade area under GATT Article XXIV: 1. It is a group of two or more customs territories. 2. Duties and other restrictive regulations of commerce are eliminated on substantially all trade between the constituent territories for originating products. 3. It must be formed only between countries sharing a land border. Which of the statements given above are correct?