SSC CGL (Prelims) General: International Trade and Economic Agreements questions with solutions

Q1. Which of the following best reflects the economic significance of the India–UAE Comprehensive Economic Partnership Agreement (CEPA) in its initial years of operation?

1. It eliminated tariffs on all petroleum exports from the UAE to India
2. It focused only on government-to-government procurement contracts
3. It expanded bilateral trade by reducing duties on a wide range of goods and promoting services trade
4. It replaced all previous trade arrangements with a single currency mechanism

Answer: It expanded bilateral trade by reducing duties on a wide range of goods and promoting services trade

CEPA between India and the UAE is designed to deepen economic ties by lowering trade barriers and improving market access. Its early significance lies in boosting bilateral trade, especially through reduced duties on many goods and greater scope for services trade.