UPSC Prelims Practice Questions — ‘Resolution of steel, CBAM sticking points in India-U.K. trade pact’
Q1. In the context of recent India–UK trade negotiations, the term 'Carbon Border Adjustment Mechanism (CBAM)' most accurately refers to which one of the following?
- A. A multilateral cap-and-trade arrangement under the UNFCCC that allocates tradable emission allowances to countries based on historical responsibility.
- B. A levy imposed at the border on imported goods to reflect the carbon emissions embedded in their production, so that imports bear a carbon cost equivalent to that paid by domestic producers.
- C. A tariff concession extended under free trade agreements to exporters from countries that have ratified the Paris Agreement.
- D. A subsidy provided by importing countries to domestic producers using low-carbon technologies, financed through general taxation.
Q2. Among India's merchandise exports to the United Kingdom, which single sector accounts for the largest export value at risk from the UK's CBAM scheduled for January 2027?
- A. Aluminium
- B. Iron and steel
- C. Fertiliser
- D. Cement
Q3. How many sectors are covered under the United Kingdom's Carbon Border Adjustment Mechanism (CBAM) at the time of its commencement on 1 January 2027?
- A. Three
- B. Four
- C. Five
- D. Seven