UPSC Prelims Practice Questions — ‘G20 reviews impact of excess manufacturing capacities’

Q1. With reference to trade remedies permitted under WTO rules, consider the following statements: Which of the statements given above is/are correct?

  1. A countervailing duty may be justified even when the exporter charges the same price in its home market as in the importing country, if the export benefits from a specific subsidy that causes injury.
  2. A safeguard duty can be imposed only after the importing country finds that the imports are being dumped or subsidised.
  3. An anti-dumping duty can be imposed once the export price is shown to be below the exporter's home-market price, without any need to show injury to the domestic industry.
  • A. 1, 2 and 3
  • B. 1 only
  • C. 1 and 2 only
  • D. 2 and 3 only

Q2. Imports of a solar component into India rise sharply and suddenly. An investigation finds that the exporters charge the same prices at home as in India and receive no government subsidies, yet the Indian industry is seriously injured. Which WTO-consistent response fits this situation, applied in the manner WTO rules generally require?

  • A. A safeguard duty, levied on imports of the product from all sources
  • B. A countervailing duty, levied on imports from the countries supplying the surge
  • C. An anti-dumping duty, levied on the exporters responsible for the surge
  • D. A safeguard duty, levied only on imports from the countries supplying the surge

Q3. With reference to the WTO's Appellate Body, consider the following statements: Which of the statements given above is/are correct?

  1. The Appellate Body hears appeals only on issues of law and legal interpretations in panel reports, not on fresh evidence.
  2. An Appellate Body report becomes binding unless all members of the Dispute Settlement Body decide by consensus to reject it.
  3. Since appointments to the Appellate Body require consensus, the objection of a single member can keep its vacancies unfilled.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q4. Since December 2019 the WTO Appellate Body has not had the minimum number of members needed to hear an appeal. In this situation, consider the following statements: Which of the statements given above is/are correct?

  1. A panel report that neither party appeals can still be adopted by the Dispute Settlement Body and become binding.
  2. A member that loses before a panel can stop the report from becoming binding by appealing it.
  3. New disputes can no longer be referred to panels until the Appellate Body is restored.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 only
  • D. 1 and 2 only

Q5. An OECD assessment in 2026 reported that: (i) new steelmaking capacity is coming up mostly outside the OECD, often with government support; and (ii) relative to total assets, the median Chinese steel firm received 15 times the subsidies of steel producers elsewhere in 2024, up from 10 times in 2023. Which of the following inferences can validly be drawn from the above?

  1. The relative subsidy advantage of the typical Chinese steel firm over producers elsewhere grew between 2023 and 2024.
  2. In 2024, Chinese steel firms together received more subsidies in absolute terms than all other steel producers combined.
  3. Market signals alone may not explain where new steel capacity is being created.
  4. Every Chinese steel firm received more subsidies relative to assets than every non-Chinese steel firm in 2024.
  • A. 2, 3 and 4 only
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 1, 3 and 4 only

Q6. With reference to special and differential treatment (S&DT) at the WTO, consider the following statements: Which of the statements given above is/are correct?

  1. S&DT provisions are confined to least-developed countries; other developing members receive no differential treatment under WTO agreements.
  2. Least-developed country status at the WTO is determined by the WTO's own criteria rather than by the United Nations' classification.
  3. S&DT provisions include longer periods for implementing commitments and support to build capacity to handle disputes.
  • A. 1 and 3 only
  • B. 1, 2 and 3
  • C. 2 and 3 only
  • D. 3 only

Q7. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. In practice, a WTO decision backed by most of the membership can be held up by the objection of a single small member.
  2. WTO members announce for themselves whether they are developing countries for the purposes of WTO agreements.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q8. With reference to the G20 and the Global Forum on Steel Excess Capacity (GFSEC), consider the following statements: Which of the statements given above is/are correct?

  1. GFSEC was set up under the WTO's subsidies committee and can authorise trade measures against members found to be subsidising steel.
  2. The G20 has no charter or permanent secretariat, and its agenda is set by the rotating Presidency working with the previous and next Presidencies.
  3. Commitments in G20 ministerial outcome documents are legally binding on members, and non-compliance can be challenged at the WTO.
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 2 only
  • D. 1 and 2 only