UPSC Prelims Practice Questions — Forced labour farce
Q1. With reference to the agencies that operationalise United States trade-remedy statutes, which one of the following statements is correct?
- A. Section 301 investigations are initiated and conducted by the Office of the US Trade Representative, which may then recommend additional duties, quotas or licensing restrictions
- B. Section 301 remedies may be applied by the US Trade Representative only after the World Trade Organization's Dispute Settlement Body has authorised the suspension of concessions
- C. Section 232 investigations into threats to national security are conducted exclusively by the Office of the US Trade Representative, which alone determines the remedial tariff
- D. Every tariff action under the International Emergency Economic Powers Act must necessarily be certified by the US International Trade Commission before it can take effect
Q2. The additional duties imposed by the United States on Indian goods with effect from 24 July 2026 on forced-labour grounds were levied under which one of the following provisions?
- A. Section 232 of the Trade Expansion Act of 1962, which permits action against imports that impair national security
- B. Section 301 of the Trade Act of 1974, which permits action against foreign practices that burden or restrict US commerce
- C. Section 122 of the Trade Act of 1974, which permits action against foreign practices that are unjustifiable or discriminatory
- D. The International Emergency Economic Powers Act, which permits the President to regulate importation during a declared national emergency
Q3. Following the US Supreme Court's judgment of 20 February 2026 in Learning Resources, Inc. v. Trump, consider the following US tariff measures:
1. Tariffs on imports of steel and aluminium imposed under Section 232 of the Trade Expansion Act
2. The "reciprocal" tariffs imposed under the International Emergency Economic Powers Act
3. Tariffs imposed under the International Emergency Economic Powers Act in response to trafficking in illicit drugs
4. Additional duties under Section 301 of the Trade Act, following fresh investigations
Which of the above is/are correctly identified as measures that remained legally available to the US administration after that judgment?
- Tariffs on imports of steel and aluminium imposed under Section 232 of the Trade Expansion Act
- The "reciprocal" tariffs imposed under the International Emergency Economic Powers Act
- Tariffs imposed under the International Emergency Economic Powers Act in response to trafficking in illicit drugs
- Additional duties under Section 301 of the Trade Act, following fresh investigations
- A. 1 and 2
- B. 1 and 4
- C. 2, 3 and 4
- D. 3 only
Q4. After the judgment of 20 February 2026, the redesigned US tariff programme built on "more legally tested statutes" was operationalised principally through which one of the following?
- A. The US International Trade Commission, through global safeguard investigations into injury caused by import surges
- B. US Customs and Border Protection, through fresh emergency import proclamations issued on national-security grounds
- C. The Department of Commerce, through balance-of-payments surcharges applied uniformly across all trading partners
- D. The Office of the US Trade Representative, through investigations into forced labour and excess industrial capacity
Q5. With reference to the additional duties imposed by the United States under Section 301 with effect from 24 July 2026, consider the following statements:
1. Generic pharmaceuticals and smartphones exported from India were kept outside the purview of the additional 10 per cent duty.
2. Goods already covered by Section 232 measures, such as steel, aluminium and auto parts, were also outside the purview of the additional duty.
3. The additional duty applied to all goods from every one of the economies covered, no category of goods being exempt.
4. Every economy covered by the investigation was assigned an identical rate of additional duty, irrespective of its domestic law on forced-labour imports.
Which of the statements given above is/are correct?
- Generic pharmaceuticals and smartphones exported from India were kept outside the purview of the additional 10 per cent duty.
- Goods already covered by Section 232 measures, such as steel, aluminium and auto parts, were also outside the purview of the additional duty.
- The additional duty applied to all goods from every one of the economies covered, no category of goods being exempt.
- Every economy covered by the investigation was assigned an identical rate of additional duty, irrespective of its domestic law on forced-labour imports.
- A. 1 and 3
- B. 3 and 4 only
- C. 1 and 2
- D. 2, 3 and 4
Q6. The Government of India's assessment that an estimated 45 per cent of India's exports to the United States fall outside the purview of the additional 10 per cent Section 301 duty was issued by which one of the following?
- A. The Directorate General of Trade Remedies, the investigating authority for trade-defence measures
- B. The Ministry of Commerce and Industry, the nodal ministry for India's external trade policy
- C. The Department of Revenue in the Ministry of Finance, which administers customs duties
- D. The Ministry of External Affairs, which conducts India's economic diplomacy with the United States
Q7. India's prohibition on the import of goods produced, wholly or in part, through the use of forced labour was brought about through which one of the following instruments?
- A. A gazette notification of the Directorate General of Foreign Trade amending the Foreign Trade Policy, 2023
- B. A notification of the Central Board of Indirect Taxes and Customs amending the First Schedule to the Customs Tariff Act, 1975
- C. A set of rules notified by the Ministry of Labour and Employment under the Bonded Labour System (Abolition) Act, 1976
- D. A final finding of the Directorate General of Trade Remedies recommending prohibition of the imports concerned
Q8. With reference to India's 2026 amendment of the Foreign Trade Policy, 2023 relating to forced labour, consider the following statements:
1. It prohibits the import of goods produced or manufactured, wholly or in part, through the use of forced labour.
2. It was notified by the Directorate General of Foreign Trade through a gazette notification in July 2026.
3. The newly inserted provision defines forced labour by reference to the ILO Forced Labour Convention, 1930 (No. 29).
4. The prohibition took effect immediately upon publication of the notification in the official gazette.
Which of the statements given above is/are NOT correct?
- It prohibits the import of goods produced or manufactured, wholly or in part, through the use of forced labour.
- It was notified by the Directorate General of Foreign Trade through a gazette notification in July 2026.
- The newly inserted provision defines forced labour by reference to the ILO Forced Labour Convention, 1930 (No. 29).
- The prohibition took effect immediately upon publication of the notification in the official gazette.
- A. 1 and 3
- B. 2 only
- C. 2 and 4
- D. 4 only
Q9. Under the terms of the Section 301 action that took effect on 24 July 2026, which one of the following statements is correct?
- A. For Japan, Switzerland and South Korea the duty was capped so that the combined rate would not exceed 10 per cent, in line with their trade agreements with the US
- B. For India the additional 10 per cent duty was capped so as to be inclusive of the base tariffs already applicable to Indian goods
- C. For Canada, Mexico and the United Kingdom the new duty replaced the existing sector-specific levies on metals and automobiles
- D. For the European Union and Taiwan the duty was capped so that the combined rate would not exceed 10 per cent, in line with their trade agreements with the US
Q10. Among the economies covered by the Section 301 forced-labour action of 24 July 2026, the treatment applied to the largest number of them was which one of the following?
- A. An additional duty of 10 per cent, applied to economies found to lack laws banning imports made with forced labour
- B. A combined ceiling of 10 per cent inclusive of base tariffs, available to economies having trade agreements with the US
- C. Exemption from any additional duty, granted to economies that had ratified the ILO Forced Labour Convention, 1930
- D. An additional duty of 12.5 per cent, applied to economies found to lack laws banning imports made with forced labour
Q11. With reference to Sections 301–310 of the US Trade Act of 1974, which one of the following statements is correct?
- A. They empower the US Trade Representative to act only where the foreign practice complained of violates an international legal obligation of the country concerned
- B. A WTO panel examined them in a dispute brought by Japan and held the provisions inconsistent with the Dispute Settlement Understanding, requiring their repeal
- C. A WTO panel examined them in a dispute brought by the European Communities and held the provisions not inconsistent with the Dispute Settlement Understanding, relying on US undertakings
- D. They require the US Trade Representative to obtain prior authorisation of the WTO Dispute Settlement Body before imposing additional duties on a member country
Q12. Consider the following statements regarding the allocation of tariff-making power between the legislature and the executive in the United States:
1. Article I of the US Constitution vests in Congress the power to lay and collect taxes, duties, imposts and excises, and requires that all duties, imposts and excises be uniform throughout the United States.
2. In its judgment of February 2026 the Supreme Court invoked the major questions doctrine to hold that the power to impose unbounded tariffs had not been clearly delegated to the President by the text of the emergency economic powers legislation.
3. The same judgment held that the fixing of tariffs is an inherently executive function which Congress may not confine by statutory conditions.
Which of the statements given above is/are correct?
- Article I of the US Constitution vests in Congress the power to lay and collect taxes, duties, imposts and excises, and requires that all duties, imposts and excises be uniform throughout the United States.
- In its judgment of February 2026 the Supreme Court invoked the major questions doctrine to hold that the power to impose unbounded tariffs had not been clearly delegated to the President by the text of the emergency economic powers legislation.
- The same judgment held that the fixing of tariffs is an inherently executive function which Congress may not confine by statutory conditions.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1, 2 and 3