UPSC Prelims Practice Questions — Lawmakers in EU move to implement U.S. trade deal

Q1. Under the EU–US 'Turnberry' trade agreement, as approved by the European Parliament in March 2026, the ceiling tariff rate applied by the United States on most European Union goods (including cars, semiconductors and pharmaceuticals) entering the US is:

  • A. 10 per cent
  • B. 15 per cent
  • C. 20 per cent
  • D. 25 per cent

Q2. With reference to the EU–US 'Turnberry' trade agreement (2025) and the earlier Transatlantic Trade and Investment Partnership (TTIP) negotiations, consider the following statements: 1. Unlike the TTIP, which was never concluded, the Turnberry agreement has been approved by a plenary vote of the European Parliament. 2. Both agreements sought the complete elimination of tariffs on industrial goods traded between the two parties. 3. The Turnberry agreement contains a sunset clause limiting its duration, whereas TTIP was envisaged as an open-ended framework. Which of the statements given above is/are correct?

  1. Unlike the TTIP, which was never concluded, the Turnberry agreement has been approved by a plenary vote of the European Parliament.
  2. Both agreements sought the complete elimination of tariffs on industrial goods traded between the two parties.
  3. The Turnberry agreement contains a sunset clause limiting its duration, whereas TTIP was envisaged as an open-ended framework.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the conditions/safeguards attached by the European Parliament to its March 2026 approval of the EU–US trade deal, consider the following: 1. A 'suspension clause' enabling immediate suspension of tariff preferences if the US imposes new tariffs. 2. A 'sunrise clause' under which EU tariff cuts take effect only when the US honours its commitments. 3. A 'sunset clause' under which the agreement expires at end-March 2028 unless extended. 4. A binding Investor-State Dispute Settlement (ISDS) mechanism modelled on the TTIP draft. Which of the above is/are correctly identified?

  1. A 'suspension clause' enabling immediate suspension of tariff preferences if the US imposes new tariffs.
  2. A 'sunrise clause' under which EU tariff cuts take effect only when the US honours its commitments.
  3. A 'sunset clause' under which the agreement expires at end-March 2028 unless extended.
  4. A binding Investor-State Dispute Settlement (ISDS) mechanism modelled on the TTIP draft.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q4. Within the European Parliament, the committee that voted on 19 March 2026 to begin implementation of the EU–US trade deal (the 'Turnberry' agreement), with safeguard conditions, is the:

  • A. Committee on Economic and Monetary Affairs (ECON)
  • B. Committee on Industry, Research and Energy (ITRE)
  • C. Committee on Foreign Affairs (AFET)
  • D. Committee on International Trade (INTA)