MCQ
Free Trade Agreements MCQ - Practice Questions with Answers
Solve 61 Free Trade Agreements questions for RAS/RPSC preparation.
Practice questions
Q1Consider 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?
Statements 1 and 2 are correct. Statement 3 is false because the agreement was under the broader framework of the Comprehensive Economic Cooperation Agreement between India and ASEAN, not the India-UAE CEPA.
Q2Consider 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?
Statements 1, 2 and 4 are correct. Statement 3 is false because the Sensitive Track is described as tariffs to be reduced to 0% and 5%, not 10% and 15%.
Q3Consider 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?
Statements 1 and 2 are correct. Statement 3 is false because the WTO glossary specifically includes preferences that a member may offer unilaterally; therefore they are not always reciprocal agreements.
Q4Consider 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?
Statements 1 and 2 are correct: the FAQ describes an Early Harvest Scheme as a precursor to an FTA and a way to identify products for tariff liberalisation pending negotiations. Statement 3 is incorrect because the source calls it primarily a confidence-building measure, not a customs-revenue measure.
Q5Consider 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?
Statement 1 is correct: FTAs are arrangements to abolish or reduce tariffs, quotas and preferences on traded goods and services. Statement 2 is incorrect: in a PTA, duty reduction is linked to a positive list, not a negative list. Statement 3 is correct: CECA and CEPA are described as integrated trade negotiations covering goods, services, investments and related areas.
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6Consider the following statements: 1. In an FTA, products in the negative list are the products on which duty is reduced. 2. A traditional FTA is more comprehensive than CECA or CEPA because it covers services, investment and government procurement. 3. An Early Harvest Scheme helps trading partners identify certain products for tariff liberalisation pending the conclusion of FTA negotiation. Which of the statements given above are correct?
7Consider the following statements about Rules of Origin in FTAs: 1. Without Rules of Origin, preferential tariffs under an FTA cannot be implemented. 2. Rules of Origin ensure that non-members automatically receive the tariff concessions agreed among FTA partners. 3. A Certificate of Origin is used to enforce Rules of Origin. 4. Change in tariff classification and regional value addition are among the common criteria used in Rules of Origin. Which of the statements given above are correct?
8Consider the following statements: 1. Under the India-UAE CEPA, the UAE eliminated duties on 97.4% of tariff lines corresponding to 99% of imports from India. 2. India obtained immediate duty elimination on over 80% of its tariff lines corresponding to 90% of India's exports in value terms. 3. In services, India offered 111 sub-sectors to the UAE, while the UAE offered 100 sub-sectors to India. 4. The India-UAE CEPA took broader and deeper services commitments across all sectors and modes of supply. Which of the statements given above are correct?
9Consider the following statements about concepts used in FTAs: 1. In a Preferential Trade Agreement, partners reduce tariffs on an agreed number of tariff lines. 2. The products on which partners agree to reduce duty are placed in a positive list. 3. PTAs generally cover substantially all trade. 4. Rules of Origin help determine the country of origin of a product for international trade purposes. Which of the statements given above are correct?
10Consider the following statements: 1. India and EFTA signed TEPA on 10 March 2025. 2. Sweden is one of the EFTA countries covered in the India-EFTA TEPA. 3. EFTA was set up in 1950. Which of the statements given above are correct?
11Consider the following statements: 1. Under India-EFTA TEPA, EFTA offered 92.2 percent of its tariff lines covering 99.6 percent of India's exports. 2. India offered 95.3 percent of its tariff lines covering 82.7 percent of EFTA exports. 3. Dairy, soya, coal and sensitive agricultural products were kept in India's exclusion list. Which of the statements given above are correct?
12Consider the following statements about safeguards and evaluation in India's FTA/PTA approach: 1. Impact evaluation of FTAs is a continuous process that begins before FTA/PTA negotiations are entered into. 2. Sensitive or negative lists may be maintained for items on which limited or no tariff concessions are granted. 3. In case of import surge and injury to domestic industry, recourse may be taken to measures such as anti-dumping and safeguards. 4. Every FTA/PTA lacks a joint review mechanism after implementation. Which of the statements given above are correct?
13Consider the following statements regarding commitments and structure of the India-EFTA TEPA: 1. PIB quoted the minister as saying that, for the first time, India was signing an FTA with four developed nations. 2. The cited commitment included 100 billion US dollars of investment and 1 million direct jobs over 15 years. 3. The agreement comprises 4 chapters. Which of the statements given above are correct?
14Consider the following statements about the services and mobility provisions of the India-New Zealand FTA: 1. New Zealand offered commitments across 118 services sectors and Most-Favoured Nation commitments in about 139 sub-sectors. 2. The FTA provides a quota of 5,000 Temporary Employment Entry visas and 1,000 Work and Holiday visas. 3. STEM Bachelor's and Master's graduates get post-study work rights up to four years, while doctoral scholars get up to three years. 4. New Zealand's imports in textiles, apparel and made-ups were all recorded at USD 1.27 billion each in the Ministry of Textiles release. Which of the statements given above are correct?
15Consider the following statements about the scope and coverage of the India-Mauritius CECPA: 1. The agreement covers trade in goods, rules of origin and trade in services, among other areas. 2. It covers 310 export items for India. 3. Mauritius gets preferential market access into India for 310 products. Which of the statements given above are correct?