UPSC Prelims Practice Questions — India, Canada conclude third round of talks on trade pact

Q1. CEPA, the nomenclature used for the trade pact being negotiated between India and Canada, stands for Comprehensive Economic Partnership Agreement. Among the following four trade partners of India — the United Arab Emirates, Oman, Australia and the EFTA bloc — with how many has India's agreement been designated as a 'CEPA'?

  • A. Only one
  • B. Only two
  • C. Only three
  • D. All four

Q2. In which year did India and Canada formally agree to re-launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA), while also agreeing to consider an Interim Agreement or Early Progress Trade Agreement (EPTA)?

  • A. 2018
  • B. 2020
  • C. 2022
  • D. 2024

Q3. Which document, signed by the trade ministers of India and Canada on 2 March 2026, lays down the format, frequency and approach that govern the ongoing rounds of the India–Canada CEPA negotiations?

  • A. The Terms of Reference (ToR) for the CEPA negotiations
  • B. The Early Progress Trade Agreement (EPTA)
  • C. The Joint Leaders' Statement on Trade and Investment
  • D. The Memorandum of Understanding establishing the Canada-India Trade and Investment Forum

Q4. Which city hosted the latest (third) round of India–Canada CEPA negotiations, concluded in July 2026?

  • A. Toronto
  • B. Ottawa
  • C. Vancouver
  • D. Vanijya Bhawan, New Delhi

Q5. In the context of the India–Canada CEPA, the frequently cited figure of 'USD 50 billion by 2030' precisely denotes which one of the following?

  • A. The envisaged level of two-way bilateral trade between India and Canada to be reached by 2030
  • B. The cumulative Canadian foreign direct investment to be attracted into India by 2030
  • C. The value of India's merchandise exports alone to Canada to be achieved by 2030
  • D. The value of trade that will become duty-free once CEPA tariff concessions are fully phased in by 2030

Q6. As per official figures cited ahead of the CEPA negotiating rounds, India's merchandise exports to Canada in FY 2025-26 were of the order of:

  • A. USD 3.28 billion
  • B. USD 4.67 billion
  • C. USD 8.66 billion
  • D. USD 50 billion

Q7. On the Indian side, the negotiation of the India–Canada Comprehensive Economic Partnership Agreement is led by which one of the following?

  • A. Department of Commerce, Ministry of Commerce and Industry
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Economic Diplomacy Division, Ministry of External Affairs
  • D. Department of Revenue, Ministry of Finance

Q8. Consider the following statements regarding the signing of the Terms of Reference for the India–Canada CEPA on 2 March 2026: 1. On the Indian side it was signed by the Union Minister of Commerce and Industry. 2. On the Canadian side it was signed by Canada's Minister of International Trade. 3. The document was exchanged in the presence of the Prime Minister of India and the then Canadian Prime Minister Justin Trudeau. Which of the statements given above is/are correct?

  1. On the Indian side it was signed by the Union Minister of Commerce and Industry.
  2. On the Canadian side it was signed by Canada's Minister of International Trade.
  3. The document was exchanged in the presence of the Prime Minister of India and the then Canadian Prime Minister Justin Trudeau.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. With reference to the nomenclature of India's recent trade agreements, consider the following pairings of agreement type and partner: 1. Comprehensive Economic Partnership Agreement (CEPA) — United Arab Emirates 2. Economic Cooperation and Trade Agreement (ECTA) — Australia 3. Trade and Economic Partnership Agreement (TEPA) — European Free Trade Association 4. Comprehensive Economic and Trade Agreement (CETA) — Oman Which of the above is/are correctly identified?

  1. Comprehensive Economic Partnership Agreement (CEPA) — United Arab Emirates
  2. Economic Cooperation and Trade Agreement (ECTA) — Australia
  3. Trade and Economic Partnership Agreement (TEPA) — European Free Trade Association
  4. Comprehensive Economic and Trade Agreement (CETA) — Oman
  • A. 1 and 2 only
  • B. 2, 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 3 and 4 only

Q10. In the sequence of events that revived India–Canada trade engagement after the freeze in ties, which one of the following was the earliest milestone?

  • A. The bilateral meeting of the two Prime Ministers on the margins of the G7 meeting at Kananaskis, Canada
  • B. The signing of the Terms of Reference for the CEPA negotiations
  • C. The second round of CEPA negotiations at Vanijya Bhawan, New Delhi
  • D. The conclusion of the third round of CEPA negotiations at Ottawa