UPSC Prelims Practice Questions — India–Canada Joint Statement on the Conclusion of the Second Round of Comprehensive Economic Partnership Agreement (CEPA) Negotiations

Q1. In the Government of India, the negotiation of Comprehensive Economic Partnership Agreements (CEPAs), such as the India–Canada CEPA, is led exclusively by the Department of Commerce, which functions under which one of the following Union Ministries?

  • A. Ministry of External Affairs
  • B. Ministry of Finance
  • C. Ministry of Commerce and Industry
  • D. Ministry of Corporate Affairs

Q2. Since the India–Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations were originally launched in 2010, how many rounds of negotiations were concluded before the talks were paused in 2017?

  • A. Eight
  • B. Nine
  • C. Ten
  • D. Eleven

Q3. In the context of recent India–Canada trade negotiations, the term 'Early Progress Trade Agreement (EPTA)' refers to which one of the following?

  • A. An interim limited-scope trade agreement to be concluded early as a transitional step toward a wider Comprehensive Economic Partnership Agreement
  • B. A preferential tariff arrangement granting duty-free access only to agricultural exports from developing countries
  • C. A unilateral tariff concession scheme extended by Canada to India under its Generalized System of Preferences
  • D. A bilateral investment protection treaty meant to replace the lapsed India–Canada Foreign Investment Promotion and Protection Agreement

Q4. After how many rounds of negotiations were the original India–Canada Comprehensive Economic Partnership Agreement (CEPA) talks, launched in 2010, paused in 2017?

  • A. 6 rounds
  • B. 8 rounds
  • C. 10 rounds
  • D. 12 rounds

Q5. In the context of the negotiations concluded between India and Canada at New Delhi in May 2026, the term 'Comprehensive Economic Partnership Agreement (CEPA)' most accurately refers to which one of the following?

  • A. A limited trade arrangement under which the two partners exchange tariff concessions on a specified positive list of goods only
  • B. A wide-ranging bilateral trade pact covering trade in goods and services along with disciplines such as investment, intellectual property, rules of origin and technical standards
  • C. A WTO-administered plurilateral arrangement that mandates the elimination of all non-tariff barriers among signatories
  • D. A customs union under which the two partners adopt a common external tariff schedule against third countries

Q6. With reference to the India–Canada Joint Statement on the Conclusion of the Second Round of Comprehensive Economic Partnership Agreement (CEPA) Negotiations, consider the following statements: 1. The Second Round was held at Vanijya Bhawan, New Delhi, from 4 to 8 May 2026, whereas the Terms of Reference for the relaunched CEPA negotiations had been signed earlier on 2 March 2026. 2. Unlike the previous round, the Second Round was hosted on the Indian side by the Ministry of External Affairs rather than by the Department of Commerce. 3. The joint statement records that the next round of negotiations is to be held in Ottawa, Canada. Which of the statements given above is/are correct?

  1. The Second Round was held at Vanijya Bhawan, New Delhi, from 4 to 8 May 2026, whereas the Terms of Reference for the relaunched CEPA negotiations had been signed earlier on 2 March 2026.
  2. Unlike the previous round, the Second Round was hosted on the Indian side by the Ministry of External Affairs rather than by the Department of Commerce.
  3. The joint statement records that the next round of negotiations is to be held in Ottawa, Canada.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. With reference to India's bilateral and regional trade-agreement architecture, consider the following pairings of agreement with its year of signing: 1. India–UAE Comprehensive Economic Partnership Agreement (CEPA) — 2022 2. India–Australia Economic Cooperation and Trade Agreement (ECTA) — 2022 3. India–EFTA Trade and Economic Partnership Agreement (TEPA) — 2024 4. India–Japan Comprehensive Economic Partnership Agreement (CEPA) — 2010 Which of the pairings given above are correctly matched?

  1. India–UAE Comprehensive Economic Partnership Agreement (CEPA) — 2022
  2. India–Australia Economic Cooperation and Trade Agreement (ECTA) — 2022
  3. India–EFTA Trade and Economic Partnership Agreement (TEPA) — 2024
  4. India–Japan Comprehensive Economic Partnership Agreement (CEPA) — 2010
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q8. Which one of the following is the nodal Union Ministry responsible for negotiating India's Comprehensive Economic Partnership Agreements (CEPAs), including those concluded with the UAE, Japan and the EFTA bloc?

  • A. Ministry of External Affairs
  • B. Ministry of Finance
  • C. Ministry of Commerce and Industry
  • D. NITI Aayog

Q9. As per the India–Canada Joint Statement following the second round of CEPA negotiations (May 2026), what was the approximate value of bilateral merchandise trade between India and Canada in the financial year 2024-25?

  • A. USD 4.4 billion
  • B. USD 8.7 billion
  • C. USD 13.5 billion
  • D. USD 50 billion

Q10. The Second Round of India–Canada CEPA negotiations (May 2026) was hosted at Vanijya Bhawan, New Delhi. Vanijya Bhawan serves as the dedicated office complex of which one of the following?

  • A. Department of Commerce, Ministry of Commerce & Industry
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Economic Relations Division, Ministry of External Affairs

Q11. With reference to Canada's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the United States-Mexico-Canada Agreement (USMCA), consider the following statements: Which of the statements given above is/are correct?

  1. The CPTPP entered into force for Canada in December 2018, whereas the USMCA superseded NAFTA from July 2020.
  2. Unlike NAFTA, the USMCA brings Chile and Peru within the North American preferential trade zone as additional parties.
  3. The United Kingdom's accession to the CPTPP in 2024 was the first accession to the agreement since its entry into force.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3
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