UPSC Prelims 2017 – Question 83

UPSC Prelims 2017 – Question 83

UPSC Prelims Mock Test - ECONOMY 2

Q83. Consider the following statements:

  1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
  2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
  3. TFA came into force in January 2016.

Which of the statements given above is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3

The correct answer is 1 and 2 only. 

  • Trade Facilitation Agreement (TFA) 
  • The Trade Facilitation Agreement (TFA) was one of ten agreements reached by WTO members (including India) at the Bali Ministerial meeting in December 2013. Hence, statement 2 is correct. 
  • The TFA aims to accelerate global trade by reforming customs procedures and eliminating red tape. 
  • India agreed to sign the TFA by July 31, 2014, to ease customs procedures and boost commerce. Hence, statement 1 is correct. 
  • The ratification will supplement India’s ongoing reforms to simplify and improve transparency in cross-border trade in goods, and it will also help India boost economic growth by lowering trade costs and supporting its integration into the global economy. 
  • The TFA’s implementation has the potential to generate $1 trillion in global economic activity, creating 21 million new jobs and lowering the cost of doing international trade by 10 to 15%. 
  • TFA entered into force in February 2017 following ratification by two-thirds of WTO members. Hence, statement 3 is incorrect. 

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