UPSC Prelims Practice Questions — Indonesia may struggle to deliver on new U.S. farm import promises, traders say

Q1. With reference to the Indonesia–United States Agreement on Reciprocal Trade (ART) signed in February 2026, consider the following commodities exported by Indonesia to the United States: 1. Palm oil 2. Cocoa 3. Soybeans 4. Coffee Which of the above is/are correctly identified as exempted by the United States from the reciprocal tariff under this agreement?

  1. Palm oil
  2. Cocoa
  3. Soybeans
  4. Coffee
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q2. The Indonesia–United States Agreement on Reciprocal Trade signed in February 2026 was signed on behalf of the United States by the holder of which one of the following offices?

  • A. United States Secretary of Commerce
  • B. United States Trade Representative
  • C. United States Secretary of State
  • D. United States Secretary of Agriculture

Q3. Among the agricultural commodities covered by Indonesia's import commitments under the 2026 Agreement on Reciprocal Trade with the United States, which one is to see the largest proportional jump (multiple of times) over its previous annual import volume?

  • A. Wheat
  • B. Soybeans
  • C. Soymeal
  • D. Corn

Q4. Under the Agreement on Reciprocal Trade finalised between Indonesia and the United States in February 2026, what is the reciprocal tariff rate (in per cent) that the United States imposes on most Indonesian goods?

  • A. 10
  • B. 15
  • C. 19
  • D. 32

Q5. With reference to the 2026 Indonesia–United States Agreement on Reciprocal Trade (ART) as compared with the tariff regime that preceded it, consider the following statements: 1. The reciprocal tariff imposed by the United States on Indonesian goods under the ART is lower than the punitive rate announced for Indonesia in April 2025. 2. Under the ART, Indonesia has committed to eliminate tariffs on more than 99 per cent of United States products, whereas earlier bilateral trade was governed largely by WTO Most-Favoured-Nation tariff schedules. 3. Unlike the framework agreement reached in 2025, the ART excludes agricultural products from Indonesia's tariff-cut commitments. Which of the statements given above is/are correct?

  1. The reciprocal tariff imposed by the United States on Indonesian goods under the ART is lower than the punitive rate announced for Indonesia in April 2025.
  2. Under the ART, Indonesia has committed to eliminate tariffs on more than 99 per cent of United States products, whereas earlier bilateral trade was governed largely by WTO Most-Favoured-Nation tariff schedules.
  3. Unlike the framework agreement reached in 2025, the ART excludes agricultural products from Indonesia's tariff-cut commitments.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3