Free Trade Agreements MCQ — 61 Practice Questions with Answers

Q1. Consider the following statements about the India-ASEAN Trade in Goods Agreement: 1. India and ASEAN signed the Trade in Goods Agreement on 13 August 2009. 2. It came into force on 1 January 2010 in respect of Malaysia, Singapore and Thailand. 3. It was signed under the broader framework of the India-UAE CEPA. Which of the statements given above are correct?

Q2. Consider the following statements about tariff-concession categories in FTAs: 1. Tariff concessions may be offered through tariff elimination or tariff reduction. 2. Under the India-ASEAN explanation, the Normal Track refers to items for which tariffs are to be eliminated, including through phase-out periods. 3. The Sensitive Track means tariffs are reduced to 10% and 15% bands. 4. The Exclusion List or Negative List covers items on which no tariff concessions or other barrier reductions are offered. Which of the statements given above are correct?

Q3. Consider the following statements about preferential trade arrangements as described by the WTO: 1. They can involve trade preferences such as lower or zero tariffs. 2. Such preferences may be offered unilaterally by a member to a trade partner. 3. They are always reciprocal agreements between two members. Which of the statements given above are correct?

Q4. Consider the following statements about an Early Harvest Scheme: 1. It is a precursor to a free trade agreement between two trading partners. 2. It helps identify certain products for tariff liberalisation while FTA negotiations are pending. 3. It is primarily a measure for raising customs revenue before an FTA is concluded. Which of the statements given above are correct?

Q5. Consider the following statements: 1. FTAs are arrangements between two or more countries, or a country and a trading bloc, to abolish or reduce trade barriers on traded goods and services. 2. In a PTA, the list of products on which duty is to be reduced is called a negative list. 3. CECA and CEPA generally cover goods, services and investment as an integrated package. Which of the statements given above are correct?