UPSC Prelims Practice Questions — India softens EU steel import curbs hit, secures 80% exports

Q1. Of the components that together make up India's total potential duty-free steel export access to the European Union from 1 July 2026, which one is the largest?

  • A. The residual quota of about 0.9 million tonnes that Indian exporters may compete for along with other origins
  • B. The additional preferential quota of about 6.95 lakh tonnes conceded to India under the concluded FTA
  • C. The country-specific tariff-rate quota of about 1.9 million tonnes allotted to India annually
  • D. The pre-existing WTO-bound quota of about 9.47 lakh tonnes already available to India

Q2. In the European Union's quota-based steel safeguard system, the term 'residual quota' refers to which one of the following?

  • A. The part of a country's allocation that remains unused at the close of a quarter and lapses without being carried forward
  • B. The duty-free volume not reserved for any single supplying country, which exporters of various origins may draw upon
  • C. The volume that may still be shipped into the bloc once the applicable out-of-quota tariff has been paid in full
  • D. The share of the bloc-wide ceiling set aside for steel products not yet assigned to any product category

Q3. Under the WTO Agreement on Safeguards, what is the maximum total period for which a safeguard measure may normally remain in force, counting the initial period together with any extension?

  • A. Eight years
  • B. Four years
  • C. Ten years
  • D. Twelve years

Q4. With reference to the distinction between safeguard measures on the one hand and anti-dumping and countervailing measures on the other under WTO rules, consider the following statements: 1. A safeguard measure may be imposed without any finding that exporters have engaged in an unfair trade practice. 2. Anti-dumping and countervailing duties must be applied on a most-favoured-nation basis to imports from all sources. 3. A Member applying a safeguard measure may be required to provide trade compensation to the affected exporting Members. 4. A safeguard measure that stays in force for more than one year must be progressively liberalised at regular intervals. Which of the statements given above is/are correct?

  1. A safeguard measure may be imposed without any finding that exporters have engaged in an unfair trade practice.
  2. Anti-dumping and countervailing duties must be applied on a most-favoured-nation basis to imports from all sources.
  3. A Member applying a safeguard measure may be required to provide trade compensation to the affected exporting Members.
  4. A safeguard measure that stays in force for more than one year must be progressively liberalised at regular intervals.
  • A. 1, 3 and 4
  • B. 1 and 2 only
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q5. When the European Union's Carbon Border Adjustment Mechanism entered its definitive phase on 1 January 2026, how many product groups did it cover?

  • A. Four
  • B. Five
  • C. Six
  • D. Nine

Q6. The European Union's carbon levy on imports of emission-intensive goods was established by which one of the following legal instruments?

  • A. Regulation (EU) 2019/159, which introduced the bloc's quota-based safeguard on imports of steel products
  • B. Regulation (EU) 2021/1119, the European Climate Law setting the bloc's binding climate neutrality objective
  • C. Regulation (EU) 2023/104, which amended the bloc's existing safeguard measure on imports of steel
  • D. Regulation (EU) 2023/956, adopted in May 2023, with a transitional reporting phase from October 2023

Q7. Consider the following statements comparing India's steel access to the European Union before and after the India-EU trade agreement: 1. India's access from 1 July 2026 combines a pre-existing WTO quota of about 9.47 lakh tonnes with an additional preferential quota of about 6.95 lakh tonnes conceded under the agreement. 2. The steel quota commitments became operative only after the agreement had been signed and had entered into force for both sides. 3. Unlike the quota-based safeguard, the EU's carbon levy applies to Indian steel both within and outside the quota. Which of the statements given above is/are correct?

  1. India's access from 1 July 2026 combines a pre-existing WTO quota of about 9.47 lakh tonnes with an additional preferential quota of about 6.95 lakh tonnes conceded under the agreement.
  2. The steel quota commitments became operative only after the agreement had been signed and had entered into force for both sides.
  3. Unlike the quota-based safeguard, the EU's carbon levy applies to Indian steel both within and outside the quota.
  • A. 1 and 2 only
  • B. 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. India and the European Union announced the conclusion of negotiations for their free trade agreement in which one of the following months?

  • A. November 2025
  • B. January 2026
  • C. February 2026
  • D. July 2026

Q9. The upgraded Steel Import Monitoring System 2.0 portal was developed with inputs from the DGFT and the Bureau of Indian Standards together with which one of the following central public sector enterprises?

  • A. MECON Limited
  • B. NMDC Limited
  • C. MSTC Limited
  • D. KIOCL Limited

Q10. Consider the following statements regarding India's steel sector targets and its export destinations: 1. The National Steel Policy, 2017 envisages a crude steel capacity of 300 million tonnes and domestic per capita steel consumption of 160 kg by 2030-31. 2. Nearly 40 per cent of India's finished steel exports in the recently reported year went to the European Union, making it one of India's most significant overseas markets. 3. The National Steel Policy, 2017 requires that the entire projected addition to crude steel capacity be achieved exclusively through public sector expansion. Which of the statements given above is/are correct?

  1. The National Steel Policy, 2017 envisages a crude steel capacity of 300 million tonnes and domestic per capita steel consumption of 160 kg by 2030-31.
  2. Nearly 40 per cent of India's finished steel exports in the recently reported year went to the European Union, making it one of India's most significant overseas markets.
  3. The National Steel Policy, 2017 requires that the entire projected addition to crude steel capacity be achieved exclusively through public sector expansion.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. The additional United States import tariffs of 25 per cent on certain steel products and 10 per cent on certain aluminium products, proclaimed in March 2018 on national security grounds, were imposed under which one of the following statutory provisions?

  • A. Section 301 of the Trade Act of 1974
  • B. Section 232 of the Trade Expansion Act of 1962
  • C. Section 201 of the Trade Act of 1974
  • D. Section 337 of the Tariff Act of 1930

Q12. Which one of the following statements about the legal authority for safeguard measures under the WTO framework is correct?

  • A. They are taken pursuant to Article VI of GATT 1994, and may be applied only against exporters found to be dumping their products
  • B. They are taken pursuant to Article XXIV of GATT 1994, and can never be challenged before a WTO dispute settlement panel
  • C. They are taken pursuant to Article XIX of GATT 1994, and must generally be applied irrespective of the source of the imports
  • D. They are taken pursuant to Article XX of GATT 1994, and become permanent once serious injury has been determined