UPSC Prelims Practice Questions — Union Minister of Commerce and Industry Shri Piyush Goyal and New Zealand’s Minister for Trade and Investment Hon. Todd McClay sign the landmark India–New Zealand Free Trade Agreement

Q1. With reference to the India–New Zealand Free Trade Agreement (2026), consider the following items. Which of the following is/are NOT a part of India's sensitive exclusion list (items kept out of duty concessions to New Zealand)? 1. Dairy products 2. Onions 3. Coking coal 4. Rubber

  1. Dairy products
  2. Onions
  3. Coking coal
  4. Rubber
  • A. 1 and 2 only
  • B. 3 only
  • C. 1, 2 and 4 only
  • D. 2 and 3 only

Q2. Under the India–New Zealand Free Trade Agreement signed in April 2026, in how many services sub-sectors has New Zealand made Most-Favoured-Nation (MFN) commitments to India?

  • A. 70
  • B. 95
  • C. 118
  • D. 139

Q3. Match List I (Milestone in the India–New Zealand FTA process) with List II (Date / Period) and select the correct answer using the code given below.

  • A. A-3, B-4, C-1, D-2
  • B. A-3, B-1, C-4, D-2
  • C. A-4, B-3, C-1, D-2
  • D. A-3, B-4, C-2, D-1

Q4. Match List I (Milestone in India-New Zealand FTA process) with List II (Date) and select the answer using the code given below the Lists:

  • A. A-3, B-4, C-1, D-2
  • B. A-3, B-1, C-4, D-2
  • C. A-4, B-3, C-1, D-2
  • D. A-3, B-4, C-2, D-1

Q5. With reference to the India-New Zealand Free Trade Agreement signed in April 2026, which one of the following correctly describes the tariff market-access offered by India to New Zealand?

  • A. Market access on 100% of India's tariff lines covering 100% of bilateral trade
  • B. Market access on about 70% of India's tariff lines covering about 95% of bilateral trade with New Zealand
  • C. Market access on about 95% of India's tariff lines covering about 70% of bilateral trade with New Zealand
  • D. Market access on 100% of India's tariff lines with only dairy products kept in the exclusion list

Q6. Match List I (Provision under the India-New Zealand FTA, 2026) with List II (Quantum/Number) and select the answer using the code given below the Lists:

  • A. A-3, B-4, C-2, D-1
  • B. A-4, B-3, C-1, D-2
  • C. A-3, B-1, C-2, D-4
  • D. A-4, B-3, C-2, D-1

Q7. The India–EFTA Trade and Economic Partnership Agreement (TEPA), which entered into force on 1 October 2025, was signed with how many European nations forming the European Free Trade Association?

  • A. Three
  • B. Four
  • C. Five
  • D. Seven

Q8. In the Government of India, the negotiation and implementation of bilateral Free Trade Agreements such as the UAE-CEPA, Australia-ECTA, EFTA-TEPA and Mauritius-CECPA is the responsibility of which one of the following?

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

Q9. With reference to India's recent Free Trade Agreements, consider the following statements: 1. The India–Mauritius CECPA (2021) was the first trade agreement signed by India with a country in Africa. 2. The India–Australia ECTA (2022) was India's first trade agreement with a developed country after more than a decade. 3. Under the India–EFTA TEPA (2024), all four EFTA partner states are also member states of the European Union. Which of the statements given above is/are correct?

  1. The India–Mauritius CECPA (2021) was the first trade agreement signed by India with a country in Africa.
  2. The India–Australia ECTA (2022) was India's first trade agreement with a developed country after more than a decade.
  3. Under the India–EFTA TEPA (2024), all four EFTA partner states are also member states of the European Union.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. The Treaty of Waitangi, which established formal relations between the British Crown and the Māori chiefs and is regarded as New Zealand's founding constitutional document, was signed in which year?

  • A. 1835
  • B. 1840
  • C. 1907
  • D. 1947

Q11. Which one of the following cities is the capital (seat of government) of New Zealand?

  • A. Auckland
  • B. Christchurch
  • C. Wellington
  • D. Hamilton

Q12. With reference to the geographical features surrounding New Zealand, which of the following water bodies does/do NOT directly border New Zealand?

  1. Tasman Sea
  2. Cook Strait
  3. Bass Strait
  4. South Pacific Ocean
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 only
  • D. 1, 2 and 4

Q13. Which one of the following provisions of the General Agreement on Tariffs and Trade (GATT), 1994 primarily permits WTO Member countries to form Free Trade Agreements and Customs Unions as an exception to the Most-Favoured-Nation obligation?

  • A. Article I of GATT 1994
  • B. Article XI of GATT 1994
  • C. Article XX of GATT 1994
  • D. Article XXIV of GATT 1994

Q14. As per the Understanding on the Interpretation of Article XXIV of GATT 1994, the transition period for the formation of a customs union or a free-trade area should exceed how many years only in 'exceptional cases'?

  • A. 5 years
  • B. 10 years
  • C. 15 years
  • D. 20 years

Q15. With reference to the types of trade arrangements recognised in international trade, consider the following statements:

  1. A Preferential Trade Agreement (PTA) involves a 'Margin of Preference' on selected tariff lines rather than complete elimination of tariffs.
  2. A Free Trade Agreement (FTA) obliges its members to adopt a common external tariff against non-members.
  3. A Customs Union eliminates tariffs on intra-bloc trade and simultaneously adopts a common external tariff.
  4. A Comprehensive Economic Partnership Agreement (CEPA) typically covers trade in services and investment, in addition to trade in goods.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q16. In the Indo-Pacific Economic Framework for Prosperity (IPEF), India is a full participant in three of its four pillars but holds only observer status in one pillar. Which one of the following is that pillar?

  • A. Pillar I – Trade
  • B. Pillar II – Supply Chains
  • C. Pillar III – Clean Economy
  • D. Pillar IV – Fair Economy

Q17. With reference to the Indo-Pacific Economic Framework for Prosperity (IPEF), of which both India and New Zealand are partners, which one of the following best describes it?

  • A. A preferential free trade agreement that eliminates tariffs on goods traded among Indo-Pacific economies
  • B. A United States–led multilateral economic engagement, launched in 2022, structured around four pillars covering trade, supply chains, clean economy and fair economy
  • C. A defence and security grouping of Quad nations together with select ASEAN members aimed at maritime security in the Indo-Pacific
  • D. A multilateral development bank that provides concessional infrastructure financing to Indo-Pacific developing economies

Q18. With reference to India–New Zealand bilateral and multilateral engagement, consider the following four countries:

  1. New Zealand
  2. India
  3. People's Republic of China
  4. Pakistan
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 3 only

Q19. The India–New Zealand Free Trade Agreement (2026), including its services and mobility chapter covering AYUSH practitioners, is implemented on the Indian side by which one of the following Ministries?

  • A. Ministry of External Affairs
  • B. Ministry of Commerce and Industry
  • C. Ministry of AYUSH
  • D. Ministry of Skill Development and Entrepreneurship

Q20. Under the India–New Zealand Free Trade Agreement (2026), what is the size of the dedicated Temporary Employment Entry Visa quota reserved for Indian professionals (covering categories such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers) at any given time?

  • A. 3,000
  • B. 5,000
  • C. 7,500
  • D. 10,000

Q21. Under the post-study work visa annex of the India–New Zealand Free Trade Agreement (2026), which category of Indian graduate is entitled to the longest post-study work visa in New Zealand?

  • A. STEM Bachelor's degree holder
  • B. STEM Master's degree holder
  • C. Doctoral (PhD) graduate
  • D. Postgraduate Diploma holder

Q22. With reference to the India–New Zealand Free Trade Agreement (2026), which of the following items is/are NOT placed in India's sensitive exclusion list? 1. Cheese 2. Sheep meat 3. Onions 4. Coking coal

  1. Cheese
  2. Sheep meat
  3. Onions
  4. Coking coal
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4
  • D. 3 only

Q23. Under the India–New Zealand Free Trade Agreement (2026), approximately what proportion of India's tariff lines has been kept in the exclusion (sensitive) list, outside tariff liberalisation?

  • A. About 10%
  • B. About 20%
  • C. About 30%
  • D. About 50%
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