UPSC Prelims Practice Questions — Visit of the delegation from United State (U.S.) for discussions on Bilateral Trade Agreement (BTA) between India and the United States from 1 -4th June 2026 at Delhi

Q1. With reference to the India–United States Bilateral Trade Agreement (BTA) negotiations, consider the following statements:

1. The Modi–Trump Joint Statement of February 2025 set the 'Mission 500' target of taking bilateral trade to USD 500 billion by 2030 and launched the BTA negotiations.
2. The India–U.S. Joint Statement of 7 February 2026 announced the conclusion of the final Bilateral Trade Agreement, superseding the earlier Mission 500 framework.
3. The April 2026 round of BTA negotiations was held in Washington D.C., while the June 2026 round was held in New Delhi.

• A. 1 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q2. Which one of the following is the nodal ministry on the Indian side that leads negotiations for the India–United States Bilateral Trade Agreement (BTA)?

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

Q3. As per the framework set out for the India–U.S. Bilateral Trade Agreement (BTA) following the Joint Statement of 7 February 2026, how many distinct negotiating pillars/tracks have been notified for the talks?

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

Q4. With reference to the institutional architecture of the India–U.S. Bilateral Trade Agreement (BTA) negotiations being conducted in 2025–26, consider the following entities: 1. Office of the United States Trade Representative (USTR) 2. Department of Commerce, Ministry of Commerce & Industry (India) 3. Bureau of Economic and Business Affairs, U.S. Department of State 4. NITI Aayog Which of the above is/are NOT the designated lead negotiating body for the BTA on either side?

1. Office of the United States Trade Representative (USTR)
2. Department of Commerce, Ministry of Commerce & Industry (India)
3. Bureau of Economic and Business Affairs, U.S. Department of State
4. NITI Aayog

• A. 1 and 2
• B. 2 and 4
• C. 3 only
• D. 3 and 4

Q5. In the context of the ongoing India–United States Bilateral Trade Agreement (BTA) negotiations, the pillar of 'Economic Security Alignment' primarily refers to which one of the following?

• A. Cooperation on supply-chain resilience, export controls and inbound/outbound investment reviews to address non-market policies of third countries
• B. Joint defence co-production and technology transfer arrangements under the Initiative on Critical and Emerging Technology (iCET)
• C. Mutual elimination of customs duties on critical minerals and rare earth elements traded between the two countries
• D. A bilateral currency swap arrangement to stabilise the rupee–dollar exchange rate and buffer external shocks

Q6. With reference to the rounds of India–United States Bilateral Trade Agreement (BTA) negotiations held in Washington D.C. (20–23 April 2026) and in New Delhi (1–4 June 2026), consider the following statements: 1. The April 2026 Washington round included Digital Trade and Investment Promotion as explicit tracks of discussion, in addition to the tracks taken up in the June 2026 Delhi round. 2. Unlike the April 2026 round, which was conducted only at the level of the USTR's Chief Negotiator, the June 2026 Delhi round was led personally by the United States Trade Representative. 3. Both rounds were follow-ups to the India–U.S. Joint Statement of 7 February 2026, which set out a framework for an Interim Agreement on reciprocal and mutually beneficial trade. Which of the statements given above is/are correct?

1. The April 2026 Washington round included Digital Trade and Investment Promotion as explicit tracks of discussion, in addition to the tracks taken up in the June 2026 Delhi round.
2. Unlike the April 2026 round, which was conducted only at the level of the USTR's Chief Negotiator, the June 2026 Delhi round was led personally by the United States Trade Representative.
3. Both rounds were follow-ups to the India–U.S. Joint Statement of 7 February 2026, which set out a framework for an Interim Agreement on reciprocal and mutually beneficial trade.

• A. 1 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q7. The 'Mission 500' target, which aims to more than double India–U.S. bilateral trade to USD 500 billion by 2030, was launched exclusively under which one of the following Joint Statements?

• A. India–U.S. Joint Statement issued during PM Modi's visit to the United States, February 2025
• B. India–U.S. Joint Statement of 7 February 2026 on the framework for an Interim Agreement
• C. Joint Statement issued at the 14th India–U.S. Trade Policy Forum, January 2024
• D. Joint Statement issued after the USTR delegation visit to New Delhi, 1–4 June 2026

Q8. With reference to the India–U.S. Bilateral Trade Agreement (BTA) framework, which of the following U.S.-origin agricultural products are NOT listed among items on which India has indicated tariff elimination/reduction?

1. Red sorghum (animal feed)
2. Soybean oil
3. Corn (maize)
4. Basmati rice

• A. 1 and 2 only
• B. 3 and 4 only
• C. 1, 2 and 3
• D. 2 and 4 only

Q9. With reference to a Preferential Trade Agreement (PTA) as signed by India, consider the following features:

1. Margin of Preference on a limited number of tariff lines
2. Comprehensive coverage of trade in services and investment
3. Movement of professionals and natural persons
4. Annexes listing products on which fixed tariff preferences are exchanged

• A. 1 and 4 only
• B. 2 and 3 only
• C. 1, 2 and 3
• D. 3 and 4 only

Q10. In the context of India's Preferential Trade Agreements (PTAs), the term 'Margin of Preference' most accurately refers to which one of the following?

• A. The percentage by which the tariff on a product imported from a partner country is reduced relative to the Most Favoured Nation (MFN) applied rate
• B. The minimum domestic value-addition a product must satisfy to qualify as 'originating' under the rules of origin
• C. The permissible deviation of an applied tariff above the WTO bound tariff rate
• D. The preferential exchange-rate differential extended to imports from partner countries

Q11. With reference to the provisions of GATT Article XXIV on customs unions and free trade areas, consider the following statements:

1. Both customs unions and free trade areas are required to eliminate duties and other restrictive regulations of commerce on substantially all the trade between the constituent territories.
2. In a customs union the members adopt a common external tariff vis-à-vis non-members, whereas in a free trade area each member retains its own external tariff schedule against non-members.
3. An interim agreement leading to the formation of a customs union or a free trade area must invariably be completed within a maximum period of five years from the date of its notification to the WTO.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q12. As per the Understanding on the Interpretation of Article XXIV of GATT 1994, the 'reasonable length of time' for the formation of a customs union or a free trade area through an interim agreement should not, except in exceptional cases, exceed how many years?

• A. 5 years
• B. 8 years
• C. 10 years
• D. 15 years

Q13. With reference to India's recent trade agreements, the term 'Trade and Economic Partnership Agreement (TEPA)' refers to the agreement India signed with which one of the following groups?

• A. European Union
• B. European Free Trade Association comprising Switzerland, Norway, Iceland and Liechtenstein
• C. Gulf Cooperation Council comprising Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and Oman
• D. Eurasian Economic Union comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan

Q14. Which one of the following is the first Free Trade Agreement signed by India that contains a legally binding commitment of USD 100 billion in investment and the creation of 1 million direct jobs?

• A. India-UAE Comprehensive Economic Partnership Agreement (CEPA)
• B. India-Australia Economic Cooperation and Trade Agreement (ECTA)
• C. India-EFTA Trade and Economic Partnership Agreement (TEPA)
• D. India-UK Comprehensive Economic and Trade Agreement (CETA)

Q15. On the Indian side, which one of the following is the nodal agency leading the negotiations with the Office of the United States Trade Representative (USTR) on the India–U.S. Bilateral Trade Agreement (BTA)?

• A. Department for Promotion of Industry and Internal Trade (DPIIT)
• B. Department of Commerce, Ministry of Commerce and Industry
• C. Directorate General of Foreign Trade (DGFT)
• D. Department of Revenue, Ministry of Finance

Q16. With reference to the international trade rules administered by the World Trade Organization (WTO), which of the following are correctly identified as 'non-tariff measures' (NTMs)?

1. Sanitary and phytosanitary (SPS) requirements imposed on imported food articles
2. Quantitative import licensing requirements
3. Ad valorem customs duty levied on the assessable value of imported goods
4. Technical regulations on product standards and conformity assessment procedures

• A. 1 and 3 only
• B. 2 and 4 only
• C. 1, 2 and 4 only
• D. 1, 2, 3 and 4