MCQ
International Trade MCQ - Practice Questions with Answers
Solve 7 International Trade questions for RAS/RPSC preparation.
Practice questions
Q1With reference to the 8th edition of the Trade Watch Quarterly released by NITI Aayog, consider the following statements:\n1. It was released by the NITI Aayog Vice-Chairman and covers the fourth quarter (January–March 2026) of FY2025-26.\n2. The focus theme of this edition is India's textile sector.\nWhich of the statements given above is/are correct?
Statement 1 is correct: the 8th edition was released by NITI Aayog Vice-Chairman Shri Ashok Kumar Lahiri on 23 June 2026 for Q4 (January–March 2026) of FY2025-26. Statement 2 is incorrect: the focus theme of this edition is India's pharmaceutical sector, not the textile sector. Hence only statement 1 is correct.
Q2Consider the following statements regarding India's WTO Trade Policy Review. Assertion (A): India's eighth WTO Trade Policy Review is scheduled for 21 and 23 July 2026. Reason (R): The review covers India's trade policies from 1 January 2021 to 31 December 2025. Select the correct option:
India's eighth WTO Trade Policy Review was scheduled for 21 and 23 July 2026, so A is true. The review indeed covers the period from 1 January 2021 to 31 December 2025, so R is also true. However, the coverage period does not explain why those specific hearing dates were fixed, so R is not the correct explanation of A. Hence the answer is B.
Q3The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which entered into force on 1 June 2026, is India's second trade agreement with a member of which regional grouping?
The India-Oman CEPA is India's second trade agreement with a Gulf Cooperation Council (GCC) member, after the India-UAE CEPA of 2022. It came into force on 1 June 2026, providing duty-free access to 99.38 per cent of India's exports and covering 98.08 per cent of Oman's tariff lines, with bilateral trade at USD 11.18 billion in FY 2025-26.
Q4With reference to the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention (DCC) effective from 15 July 2026, consider the following statements: 1. CETA provides immediate duty-free access on 99% of India's tariff lines. 2. The DCC raises the social security exemption period from three years to seven years. 3. Sensitive sectors such as dairy, cereals and apples are protected from concessions. Which of the statements given above is/are correct?
Statement 1 is correct: CETA gives immediate duty-free access on 99% of India's tariff lines. Statement 2 is incorrect: the DCC raises the social security exemption period from three years to five years, not seven. Statement 3 is correct: sensitive sectors like dairy, cereals, millets, edible oils, oilseeds and apples are protected from concessions. Hence only 1 and 3 are correct.
Q5Consider the following statements regarding the India-UK CETA:\n1. CETA provides immediate duty-free access on 75% of India's tariff lines.\n2. Sensitive sectors such as dairy products, cereals, millets, edible oils and apples are protected from tariff concessions.\nWhich of the statements given above is/are correct?
Statement 1 is incorrect: CETA provides immediate duty-free access on 99% of India's tariff lines, not 75%. Statement 2 is correct: India protected sensitive sectors including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products from tariff concessions. Hence only statement 2 is correct.
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6Consider the following statements regarding the India-UK CETA and the Double Contribution Convention (DCC):\n1. Both agreements will come into force on 15 July 2026 after both countries complete their ratification procedures.\n2. Under the DCC, the social security exemption period for Indian professionals on temporary UK assignments has been reduced from five years to three years.\nWhich of the statements given above is/are correct?
7Consider the following statements regarding the India Canada Comprehensive Economic Partnership Agreement: 1. India and Canada have agreed to conclude the CEPA by November 2026 ahead of the Group of Twenty Leaders Summit. 2. Both countries are targeting to triple bilateral trade to US dollar 50 billion by 2030 under the new agreement. Which of the statements given above is/are correct?