UPSC Prelims Practice Questions — India, New Zealand sign ‘historic’ trade deal
Q1. The India–New Zealand FTA was widely described as having been negotiated in a 'record nine months.' This nine-month period refers to the interval between which two milestones?
- A. The formal launch of negotiations (16 March 2025) and the conclusion of negotiations (22 December 2025)
- B. The conclusion of negotiations (December 2025) and the signing of the agreement (27 April 2026)
- C. The signing of the agreement (April 2026) and its expected entry into force after ratification
- D. The first round of talks and the Indian Cabinet's approval of the text
Q2. On the Indian side, the negotiation and signing of the India–New Zealand Free Trade Agreement was led by which Union entity?
- A. Ministry of Commerce and Industry
- B. Ministry of External Affairs
- C. Ministry of Finance
- D. NITI Aayog
Q3. Under the FTA, India agreed to provide market access on roughly 70% of its tariff lines. This offer is stated to cover nearly 95% — of what exactly?
- A. India's bilateral merchandise trade with New Zealand
- B. All of India's tariff lines in its customs schedule
- C. India's total global merchandise exports
- D. New Zealand's tariff lines
Q4. Which one of the following describes the single most extensive tariff concession made by either party under the India–New Zealand FTA?
- A. New Zealand grants duty-free access to 100% of its tariff lines, covering all Indian export products
- B. India grants duty-free access to 95% of its tariff lines from day one
- C. India grants duty-free access to 82% of its tariff lines from day one
- D. New Zealand grants duty-free access to 70% of Indian export products
Q5. The India–New Zealand FTA was signed for New Zealand by Todd McClay, who holds which portfolio?
- A. Minister for Trade and Investment
- B. Minister of Foreign Affairs
- C. Minister for Commerce and Consumer Affairs
- D. Minister for Economic Development
Q6. The signed India–New Zealand FTA will enter into force only after which one condition is met?
- A. Completion of ratification procedures in both India and New Zealand
- B. Ratification by the New Zealand Parliament alone
- C. Prior approval of the text by the World Trade Organization
- D. A minimum of five years of provisional application
Q7. The India–EFTA Trade and Economic Partnership Agreement (TEPA) entered into force on which date?
- A. 1 October 2025
- B. 10 March 2024
- C. 15 July 2026
- D. 27 January 2026
Q8. With reference to India's recent free trade agreements, consider the following pairings:
1. India–EFTA TEPA — a bloc comprising Switzerland, Norway, Iceland and Liechtenstein.
2. India–UK CETA — concluded in 2025 and set to enter into force on 15 July 2026.
3. India–EU FTA — concluded in January 2026, granting over 99% of Indian exports preferential entry.
4. India–New Zealand FTA — provides duty-free access to 100% of New Zealand's exports to India.
Which of the above is/are correctly identified?
- India–EFTA TEPA — a bloc comprising Switzerland, Norway, Iceland and Liechtenstein.
- India–UK CETA — concluded in 2025 and set to enter into force on 15 July 2026.
- India–EU FTA — concluded in January 2026, granting over 99% of Indian exports preferential entry.
- India–New Zealand FTA — provides duty-free access to 100% of New Zealand's exports to India.
- A. 1 and 2 only
- B. 1, 2 and 3
- C. 2, 3 and 4
- D. 1, 3 and 4
Q9. In the context of India's trade with the Oceania region, New Zealand's position is best described as:
- A. India's second-largest trading partner in Oceania
- B. India's largest trading partner in Oceania
- C. India's largest export destination in the Commonwealth
- D. India's second-largest source of dairy imports
Q10. With reference to India–New Zealand relations, consider the following statements:
1. Both India and New Zealand are members of the Commonwealth.
2. New Zealand is India's second-largest trading partner in the Oceania region.
3. India–New Zealand merchandise bilateral trade rose from about USD 855 million in 2015-16 to about USD 1298 million in 2024-25.
4. New Zealand is a founding member of the Association of Southeast Asian Nations (ASEAN).
Which of the above statements is/are NOT correct?
- Both India and New Zealand are members of the Commonwealth.
- New Zealand is India's second-largest trading partner in the Oceania region.
- India–New Zealand merchandise bilateral trade rose from about USD 855 million in 2015-16 to about USD 1298 million in 2024-25.
- New Zealand is a founding member of the Association of Southeast Asian Nations (ASEAN).
- A. 1 only
- B. 3 and 4
- C. 4 only
- D. 2 and 4
Q11. Under the FTA, the new Temporary Employment Entry (TEE) visa pathway offered by New Zealand carries a quota of how many visas for skilled Indians?
- A. 5,000
- B. 3,000
- C. 8,000
- D. 10,000
Q12. Which one of the following is the principal provision of GATT 1994 that permits WTO members to form free trade areas and customs unions as an exception to the Most-Favoured-Nation obligation?
- A. Article XXIV
- B. Article I
- C. Article III
- D. The Enabling Clause (1979)