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Q41 (IAS/2016) International Relations & Global Affairs › International Organisations & Groupings › International trade regimes Official Key

With reference to the Trans-Pacific Partnership, consider the following statements : 1. It is an agreement among all the Pacific Rim countries except China and Russia. 2. It is a strategic alliance for the purpose of maritime security only. Which of the statements given above is/are correct?

Result
Your answer: —  Ā·  Correct: D
Explanation

The correct answer is option D (Neither 1 nor 2) because both statements are incorrect.

Statement 1 is incorrect because the TPP was signed by only 12 specific Pacific Rim countries[2], not all Pacific Rim countries. The 12 TPP members were Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam[1]. This list notably excludes several Pacific Rim nations beyond just China and Russia, such as South Korea, Indonesia, the Philippines, and others.

Statement 2 is incorrect because the TPP was designed to eliminate and reduce trade barriers and covered multiple areas including trade in goods, rules of origin,[3] trade remedies, technical[4] barriers to trade, trade in services, intellectual property, government procurement, and competition policy. It was a comprehensive economic and trade agreement, not a strategic alliance limited to maritime security purposes.

Therefore, since both statements are incorrect, option D is the correct answer.

Sources
  1. [1] https://documents1.worldbank.org/curated/en/402861490788215893/pdf/113852-PUB-PUBLIC-PUBDATE-3-1-2017.pdf
  2. [2] https://documents1.worldbank.org/curated/en/402861490788215893/pdf/113852-PUB-PUBLIC-PUBDATE-3-1-2017.pdf
  3. [4] https://belonging.berkeley.edu/TPP-report
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to the Trans-Pacific Partnership, consider the following statements : 1. It is an agreement among all the Pacific Rim cou…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 Ā· 10/10

This is a classic 'Headline Awareness' question. You didn't need to memorize all 12 members, just the fundamental nature (Trade vs Security) and the scope (Selective vs Universal). It rewards understanding the 'gist' of major geopolitical shifts over rote memorization.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Which countries were members of the Trans-Pacific Partnership (TPP)?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Three of the 12 countries are from LAC—Chile, Mexico, and Peru—and the other nine TPP members include the Australia, Brunei, Canada, Japan, Malaysia, New Zealand, Singapore, the United States, and Vietnam."
Why this source?
  • Explicitly lists all 12 economies that signed the TPP.
  • Identifies the three Latin American members and the nine other members by name.
Web source
Presence: 3/5
"The TPP has its roots in the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4), a comprehensive agreement between Brunei, Chile, New Zealand, and Singapore"
Why this source?
  • Describes the TPP's roots in the earlier P4 agreement.
  • Names Brunei, Chile, New Zealand, and Singapore—confirming these countries' involvement in the TPP negotiations.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Asia-Pacific Economic Cooperation (APEC) > p. 550
Strength: 5/5
ā€œā€¢ It is a regional economic forum of 21 countries on the Pacific Rim. It was established in Ū° 1989 and aims to promote inclusive growth, greater prosperity and free trade in the Asia-Pacific region.• It is headquartered in Singapore.ā€
Why relevant

Defines APEC as a 21-country 'Pacific Rim' forum — indicates a common pool of Asia‑Pacific countries that typically appear in regional trade pacts.

How to extend

A student can compare TPP membership against the list of Pacific‑Rim/APEC economies (using a map or APEC list) to identify likely TPP members from that geographic set.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
Strength: 4/5
ā€œCountries in East Asia region have thriving trade and economic relations with each other through free trade agreements. The Association of Southeast Asian Nations (ASEAN) has free trade agreements with six partners namely China (ACFTA), Republic of Korea (AKFTA), Japan (AJCEP), India (AIFTA) as well as Australia and New Zealand (AANZFTA). In order to broaden and deepen the engagement among parties and to enhance parties' participation in economic development of the region, the leaders of 16 participating countries established the Regional Comprehensive Economic Partnership (RCEP). The RCEP was built upon the existing ASEAN+1 FTAs with the spirit to strengthen economic linkages and to enhance trade and investment related activities as well as to contribute to minimising development gap among the parties.ā€
Why relevant

Explains RCEP as built on ASEAN+1 FTAs and lists typical partners (China, Korea, Japan, India, Australia, New Zealand) — showing the recurring set of East Asia / Pacific trade partners.

How to extend

Use the repeated appearance of Australia, New Zealand, Japan, Korea, etc., as candidates to check against known TPP participants via a basic map or list of Pacific trade partners.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > 2 Asia-Pacific Trade Agreement (APTA) > p. 551
Strength: 3/5
ā€œā€¢ It was formerly known as the Bangkok Agreement.• APTA intends to promote economic development of its members and adopt mutually beneficial trade liberalization practices for regional trade expansion and economic cooperation. It was signed in 1975.• Members: Bangladesh, China, India, Republic of Korea, Lao PDR, Sri Lanka and Mongolia. \mathcal{O}ā€
Why relevant

Lists members of the Asia‑Pacific Trade Agreement (APTA) — demonstrates another grouping of Asia‑Pacific countries (Bangladesh, China, India, Korea, etc.) often considered in regional trade arrangements.

How to extend

A student could cross‑reference these Asia‑Pacific countries with the Pacific‑oriented TPP concept to eliminate inland/non‑Pacific economies and narrow down plausible TPP members.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Preferential Trade Area (PTA) > p. 504
Strength: 3/5
ā€œUnder this, member countries lower the trade barriers among themselves rather than eliminate the barriers. In PTA, members are independent to create trade relations with non-member countries. This agreement gives preferential access to certain goods. Economic Cooperation Organisation (ECO) formed in 1992, South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA) formed in 1981, etc. are examples of PTA.ā€
Why relevant

Gives the definition and mechanics of a Preferential Trade Area (PTA) where members lower barriers among themselves — relevant because TPP is a preferential/regional trade agreement.

How to extend

Knowing TPP is a PTA‑style agreement, a student can look for Pacific economies that actively conclude PTAs and then verify which of those joined the TPP.

Statement 2
What was the primary purpose of the Trans-Pacific Partnership (TPP)?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"designed to eliminate and reduce trade barriers and to establish and extend the rules and disciplines of the trading system among the parties to the agreement"
Why this source?
  • Explicitly describes the TPP as a free trade agreement.
  • States the TPP was designed to eliminate/reduce trade barriers and extend trade rules and disciplines among parties.
Web source
Presence: 4/5
"The Trans-Pacific Partnership (TPP) is a megare-gional trade agreement signed on February 4, 2016, in Auckland, New Zealand, by 12 economies that circle the Pacific Rim."
Why this source?
  • Labels the TPP as a 'megaregional trade agreement', indicating its trade-focused purpose.
  • Links the TPP to forming deeper trade ties among Pacific Rim economies.
Web source
Presence: 4/5
"The TPP ... covered trade in goods, rules of origin, trade remedies, technical barriers to trade, trade in services, intellectual property, government procurement and competition policy."
Why this source?
  • Describes the scope of the agreement covering trade in goods, services, intellectual property, and other trade-related areas.
  • Shows the TPP aimed to comprehensively govern and liberalize trade and related rules among members.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Asia-Pacific Economic Cooperation (APEC) > p. 550
Strength: 5/5
ā€œā€¢ It is a regional economic forum of 21 countries on the Pacific Rim. It was established in Ū° 1989 and aims to promote inclusive growth, greater prosperity and free trade in the Asia-Pacific region.• It is headquartered in Singapore.ā€
Why relevant

Describes APEC as a Pacific Rim regional economic forum aimed to promote inclusive growth, greater prosperity and free trade in the Asia‑Pacific region.

How to extend

A student could infer that other Pacific‑Rim agreements (like TPP) are likely aimed at promoting free trade and economic integration among Pacific countries and compare membership lists.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > General Agreement on Tariff and Trade (GATT) > p. 50
Strength: 5/5
ā€œThe General Agreement on Tariff and Trade (GATT) was established in 1948 in Geneva to pursue the objective of free trade in order to encourage growth and development amongst all member countries of the world. The main objective of the GATT was to ensure competition in commodity trade through the removal orā€
Why relevant

Explains GATT's main objective was to pursue free trade by removing barriers to encourage growth and development.

How to extend

Use this rule (trade agreements seek to reduce tariffs/barriers) to test whether the TPP's primary purpose was tariff reduction and freer trade among members.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
Strength: 4/5
ā€œThe objective of RCEP was to achieve a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement among the 16 members. The RCEP negotiation includes: trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium enterprises (SMEs) and other issues. But in Nov. 2019 India pulled itself out of the RCEP deal because of the following main concerns: • India already has FTAs with most of the countries in RCEP (China an exception) and India has trade deficit with all the countries.ā€
Why relevant

States RCEP's objective: a comprehensive, high‑quality, mutually beneficial economic partnership covering trade in goods/services, investment, IP, dispute settlement, etc.

How to extend

Compare the scope of RCEP (a Pacific/Asia trade pact) with what one would expect from TPP to judge if TPP similarly aimed at broad economic integration and trade liberalization.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Preferential Trade Area (PTA) > p. 504
Strength: 3/5
ā€œUnder this, member countries lower the trade barriers among themselves rather than eliminate the barriers. In PTA, members are independent to create trade relations with non-member countries. This agreement gives preferential access to certain goods. Economic Cooperation Organisation (ECO) formed in 1992, South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA) formed in 1981, etc. are examples of PTA.ā€
Why relevant

Defines a Preferential Trade Area (PTA) as members lowering trade barriers among themselves to give preferential access to certain goods.

How to extend

A student could use this pattern to classify TPP—if it provided preferential access/reduced barriers among Pacific members, its primary purpose aligns with PTA‑style trade liberalization.

Certificate Physical and Human Geography , GC Leong (Oxford University press 3rd ed.) > Chapter 30: World Communications > OCEAN TRANSPORT > p. 308
Strength: 3/5
ā€œstrategic or economic importance, partly because of political insecurity of the Middle East as a whole and partly because of the larger tonnage of today's shipping. Summarizing the above pattern of the world's ocean routes: (a) The Suez route is the route of the past. (b) The North and South Atlantic routes and Cape route are the routes of the present (the peak of modern trade). (c) The Trans-Pacific and Panama routes are the routes of the future (excellent prospects for countries bordering them).ā€
Why relevant

Identifies the Trans‑Pacific route as an emerging major ocean trade route with 'excellent prospects' for bordering countries.

How to extend

Combine the strategic importance of the Trans‑Pacific trade route with trade‑agreement patterns to hypothesize that an agreement named 'Trans‑Pacific' would target facilitation of trade across that route.

Pattern takeaway: UPSC frequently swaps the 'Nature' of an agreement (Trade ↔ Security) to create false statements. Additionally, beware of 'Universality Traps'—statements claiming a pact includes 'all' countries of a geographic region are almost always false because geopolitics is rarely unanimous.
How you should have studied
  1. [THE VERDICT]: Sitter. TPP was the biggest trade headline of 2015-16. The extreme phrasing ('all... except', 'only') makes it solvable via logic even with partial knowledge.
  2. [THE CONCEPTUAL TRIGGER]: Mega-Regional Trade Agreements (RTAs) vs Multilateralism (WTO). The shift towards blocs like TPP, TTIP, and RCEP.
  3. [THE HORIZONTAL EXPANSION]: Map the 'Big 3' current blocs: CPTPP (11 members, US out, UK joined in 2023), RCEP (ASEAN+5, India out, China in), and IPEF (14 partners, 4 pillars). Memorize the 'Giants' status: US is in IPEF but not CPTPP/RCEP; China is in RCEP but not IPEF/CPTPP.
  4. [THE STRATEGIC METACOGNITION]: When a new grouping appears, answer 3 basics: 1. Purpose (Trade, Security, or Climate?), 2. The 'Big Boss' (US-led or China-led?), 3. The 'Notable Absentee' (Why isn't India/China there?).
Concept hooks from this question
šŸ“Œ Adjacent topic to master
S1
šŸ‘‰ Types of regional trade agreements (PTA vs FTA vs RCEP)
šŸ’” The insight

Understanding the difference between preferential trade areas and fuller free-trade arrangements (and modern regional pacts like RCEP) helps frame what membership lists look like and why some countries join different kinds of agreements.

High-yield for UPSC: questions often ask differences between PTA, FTA and larger regional agreements or to identify members of such pacts. It connects to trade policy, negotiations and regional diplomacy. Master by comparing definitions, member obligations, and examples (use PTA definition and RCEP description in the references). Enables elimination-based MCQ strategies and short-answer explanations.

šŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Preferential Trade Area (PTA) > p. 504
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
šŸ”— Anchor: "Which countries were members of the Trans-Pacific Partnership (TPP)?"
šŸ“Œ Adjacent topic to master
S1
šŸ‘‰ Asia‑Pacific groupings & frameworks (APEC, ASEAN and ASEAN+1)
šŸ’” The insight

The TPP is an Asia‑Pacific‑centred plurilateral deal; knowing the landscape of Asia‑Pacific institutions (APEC, ASEAN and ASEAN+1 FTAs) helps locate which countries typically participate in such agreements.

Often tested: identifying member countries across overlapping regional forums and their policy priorities. Learning APEC's scope and ASEAN+1 FTAs helps predict likely members and contrasts multilateral vs plurilateral membership. Prepare via lists of members and mapping overlaps among forums.

šŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Asia-Pacific Economic Cooperation (APEC) > p. 550
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
šŸ”— Anchor: "Which countries were members of the Trans-Pacific Partnership (TPP)?"
šŸ“Œ Adjacent topic to master
S1
šŸ‘‰ Multilateral vs regional membership scale (WTO/GATT vs regional pacts)
šŸ’” The insight

Distinguishing broad universal organisations (WTO/GATT) from narrower regional/plurilateral pacts clarifies why some country sets are large/global while others (like TPP) are selective — important when identifying specific member lists.

UPSC often tests scale and scope of international economic institutions. Knowing global membership norms (WTO/GATT) versus regional membership patterns helps answer membership identification questions and reason about exceptions. Study by comparing membership counts and examples in the references.

šŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > GATT (General Agreement on Tariffs and Trade) > p. 535
  • FUNDAMENTALS OF HUMAN GEOGRAPHY, CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > International Trade > p. 74
šŸ”— Anchor: "Which countries were members of the Trans-Pacific Partnership (TPP)?"
šŸ“Œ Adjacent topic to master
S2
šŸ‘‰ Objectives of regional trade agreements
šŸ’” The insight

RCEP and APEC references describe aims like promoting trade in goods/services, investment and free trade — the same conceptual aims that underlie agreements such as the TPP.

High-yield: UPSC often asks about purposes and differences of regional trade pacts. Mastering the typical objectives (trade liberalisation, economic cooperation, market access) helps answer questions on RCEP/TPP/APEC and policy implications. Learn by comparing stated aims across sample agreements and linking to India’s positions.

šŸ“š Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Asia-Pacific Economic Cooperation (APEC) > p. 550
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > The following are some of the important features regarding WTO > p. 378
šŸ”— Anchor: "What was the primary purpose of the Trans-Pacific Partnership (TPP)?"
šŸ“Œ Adjacent topic to master
S2
šŸ‘‰ Preferential Trade Area (PTA) vs deeper trade pacts
šŸ’” The insight

The PTA reference explains lowering (not eliminating) barriers and preferential access — useful to contrast with deeper agreements like TPP which aim for broader liberalisation.

Medium-high: Questions test distinctions among PTA, FTA, customs unions and comprehensive partnerships. Knowing the technical difference clarifies what constitutes the 'primary purpose' of a pact (preferential access vs comprehensive liberalisation). Compare definitions and examples to build quick-tab answers.

šŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Preferential Trade Area (PTA) > p. 504
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
šŸ”— Anchor: "What was the primary purpose of the Trans-Pacific Partnership (TPP)?"
šŸ“Œ Adjacent topic to master
S2
šŸ‘‰ WTO/GATT objective of promoting free trade
šŸ’” The insight

WTO/GATT references state the overriding purpose is freer trade and predictable rules — a baseline for understanding why regional agreements like the TPP are negotiated.

High: UPSC often frames regional trade agreements in the context of multilateral trade rules. Grasping WTO/GATT goals helps evaluate whether a pact aligns with global trade principles and the policy trade-offs involved. Study WTO objectives alongside regional pact aims.

šŸ“š Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > The following are some of the important features regarding WTO > p. 378
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > General Agreement on Tariff and Trade (GATT) > p. 50
šŸ”— Anchor: "What was the primary purpose of the Trans-Pacific Partnership (TPP)?"
šŸŒ‘ The Hidden Trap

The TPP evolved into the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). The 'Shadow Trap' for the future: The UK is the first non-Pacific nation to accede to CPTPP (July 2023), breaking the geographic rule implied by the name.

⚔ Elimination Cheat Code

Apply the 'Totalization Filter': Statement 1 says 'All Pacific Rim countries.' The Pacific Rim includes North Korea, Colombia, Ecuador, etc. A single trade deal covering *all* such diverse economies is geopolitically impossible. Statement 2 uses 'only' for 'maritime security.' 'Partnership' usually implies economics. 'Only' is an extreme limiter. Eliminate both.

šŸ”— Mains Connection

Mains GS2 (IR) & GS3 (Economy): Use TPP/RCEP as case studies for 'The Crisis of Multilateralism.' Argue how the failure of the WTO Doha Round forced nations into these exclusionary 'Mega-Regionals,' threatening India's export competitiveness in textiles and services.

āœ“ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-I Ā· 2017 Ā· Q72 Relevance score: 3.49

Which of the following statements about the Trans-Pacific Partnership (TPP) is/are correct? 1. The TPP was signed by 12 Pacific Rim nations in the year 2015. 2. The TPP is likely to be a game-changer in global trade as member countries account for about 40 percent of global GDP. 3. India is a founder member of TPP. Select the correct answer using the code given below.

IAS Ā· 2015 Ā· Q67 Relevance score: 1.52

With reference to Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), consider the following statements : 1. It was established very recently in response to incidents of piracy and accidents of oil spills. 2. It is an alliance meant for maritime security only. Which of the statements given above is/are correct?

CDS-I Ā· 2005 Ā· Q2 Relevance score: 0.97

Consider the following statements 1. India is a member of the Asia Pacific Economic Cooperation (APEC) Forum. 2. Russia is a member of North Atlantic Treaty Organisation (NATO). Which of the statements given above is/are correct ?

CDS-I Ā· 2024 Ā· Q113 Relevance score: 0.05

Consider the following statements about the Regional Comprehensive Economic Partnership (RCEP) : 1. It is a comprehensive free trade agreement between the ASEAN member States and ASEAN's free trade agreement partners. 2. India opted out of RCEP. Which of the statements given above is/are correct?

IAS Ā· 2017 Ā· Q41 Relevance score: -0.03

With reference to ā€˜Asia Pacific Ministerial Conference on Housing and Urban Development (APMCHUD)’, consider the following statements: 1. The first APMCHUD was held in India in 2006 on the theme ā€˜Emerging Urban Forms — Policy Responses and Governance Structure’. 2. India hosts all the Annual Ministerial Conferences in partnership with ADB, APEC and ASEAN. Which of the statements given above is/are correct?