UPSC Prelims Practice Questions — The evolving nature of trade agreements
Q1. Under which provision of the GATT 1994 are Free Trade Agreements and Customs Unions permitted as a formal exception to the Most-Favoured-Nation obligation?
- A. Article I
- B. Article XI
- C. Article XX
- D. Article XXIV
Q2. In the context of WTO law, the 'Most-Favoured-Nation (MFN)' principle requires that:
- A. any trade advantage granted by a member to one country must be extended unconditionally to all other WTO members
- B. imported goods, once cleared at the border, must be treated no less favourably than like domestic goods
- C. members eliminate duties on substantially all the trade between FTA partners
- D. members maintain a positive trade balance with each of their major trading partners
Q3. Which one of the following is the sole nodal ministry of the Government of India for negotiating and concluding Free Trade Agreements such as the India-EU FTA and the India-US BTA?
- A. Ministry of External Affairs
- B. Ministry of Finance
- C. Ministry of Commerce and Industry
- D. NITI Aayog
Q4. Which one of the following is India's most recently concluded Free Trade Agreement, announced at a bilateral Summit in January 2026?
- A. India-EFTA Trade and Economic Partnership Agreement
- B. India-UK Comprehensive Economic and Trade Agreement
- C. India-European Union Free Trade Agreement
- D. India-ASEAN Trade in Goods Agreement