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Q83 (IAS/2017) Economy › External Sector & Trade › World Trade Organization Official Key

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 ?

Result
Your answer: —  ·  Correct: A
Explanation

The correct answer is option A (statements 1 and 2 only).

**Statement 1 is correct:** India ratified the WTO Agreement on Trade Facilitation (TFA) in April 2016[1], demonstrating India's commitment to simplifying trade procedures.

**Statement 2 is correct:** Text of the TFA was adopted by WTO members during 2013 Bali Ministerial Conference[2], making it part of the Bali Ministerial Package.

**Statement 3 is incorrect:** The TFA did not come into force in January 2016. The Trade Facilitation Agreement (TFA), negotiated at WTO, came into force on 22nd February 2017[4]. This was after two-thirds of WTO members had ratified the agreement. The confusion may arise because India ratified it in April 2016, but the global entry into force occurred only in February 2017.

Therefore, only statements 1 and 2 are correct, making option A the right answer.

Sources
  1. [1] https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-02/Economic%20Survey%202018-19-II.pdf
  2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
  3. [3] https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2021-01/Economic-Survey-2020-21-Volume-II.pdf
  4. [4] https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2021-01/Economic-Survey-2020-21-Volume-II.pdf
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Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
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PROVENANCE & STUDY PATTERN
Full view
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. Consider the following statements : 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO's Bali M…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 3.3/10 · 6.7/10

This question demands you track the 'lifecycle' of a treaty, not just its definition. It combines static history (Bali 2013) with dynamic status updates (Ratification/Entry into Force). If a major treaty is in the news, you must know its three milestones: Adoption, Ratification, and Enforcement.

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
Has India ratified the World Trade Organization's Trade Facilitation Agreement (TFA)?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"India ratified the WTO Agreement on Trade Facilitation (TFA) in April 2016 and subsequently constituted a National Committee on Trade Facilitation (NCTF) with the Cabinet Secretary of India as the Chair."
Why this source?
  • Explicitly states that India ratified the WTO Agreement on Trade Facilitation.
  • Provides the timing of ratification (April 2016) and subsequent actions indicating implementation steps.
Web source
Presence: 3/5
"the Trade Facilitation Agreement (TFA), negotiated at WTO, came into force on 22nd February 2017. A National Committee on Trade Facilitation (NCTF) was, accordingly, constituted in India in August 2016 with"
Why this source?
  • Notes the TFA came into force on 22nd February 2017, situating India's ratification timing relative to entry into force.
  • States that India constituted a National Committee on Trade Facilitation (NCTF) in August 2016, supporting that India took formal steps after ratification.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > 2020 > p. 554
Strength: 3/5
“The Global Competitiveness Report is published by the (a) International Monetary Fund (b) United Nations Conference on Trade and Development (c) World Economic Forum (d) World Bank No question • 5. 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) 1, 2 and 3 (d) 2 and 3 only 6. With reference to the 'National Intellectual Property Rights Policy', consider the following statements: 1.”
Why relevant

The excerpt presents the specific claim ('India has ratified the TFA') as an exam-style true/false item alongside two factual points about the TFA—showing this is a specific, checkable factual assertion often tested.

How to extend

A student could treat this as a pointer to consult authoritative lists (WTO ratification/acceptance records) or recent government notifications to verify India's status.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
Strength: 5/5
“• Need of TFA: Red Tapism poses a burden for moving goods across borders. Trade facilitation, in terms of simplification, modernisation and harmonisation of export and import processes, has therefore emerged as an important issue for the world trading system. This led to the need of TFA.• TFA came into force in 2017. It is the result of Doha Round which occurred in 2001. Text of the TFA was adopted by WTO members during 2013 Bali Ministerial Conference.”
Why relevant

Gives concrete background: the TFA text was adopted at the 2013 Bali Ministerial and came into force in 2016/2017—establishing clear dates after which members could ratify/accept the Agreement.

How to extend

Knowing the adoption and entry-into-force dates, a student can check post-2013/2016 government/WTO actions (notifications of ratification/acceptance) for India.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.3Information Technology Agreement (ITA) > p. 383
Strength: 3/5
“In the early phase of import liberalization, the electronics sector was largely kept out of this exercise, but the situation changed drastically after India, in 1996, joined the Information Technology Agreement (ITA), a plurilateral agreement under the WTO. When the ITA became effective on 1st July 1997, only 29 members had acceded to the agreement. (As of now the number of participants has grown to 82, representing about 97 per cent of world trade in IT products). ITA covers a large number of high technology products, including computers, telecommunication equipment, semiconductors, semiconductor manufacturing and testing equipment, software, scientific instruments, as well as most of the parts and accessories of these products.”
Why relevant

Shows precedent that India has joined/accepted plurilateral WTO agreements in the past (Information Technology Agreement accession in 1996).

How to extend

Using this pattern, a student might infer India’s willingness to join WTO instruments and therefore look for a formal accession/acceptance record for the TFA.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 4: International Organisations > WTO > p. 57
Strength: 4/5
“The World Trade Organisation (WTO) is an international organisation which sets the rules for global trade. This organisation was set up in 1995 as the successor to the General Agreement on Trade and Tariffs (GATT) created after the Second World War. It has 164 members (as on 29 July 2016). All decisions are taken unanimously but the major economic powers such as the US, EU and Japan have managed to use the WTO to frame rules of trade to advance their own interests. The developing countries often complain of non-transparent procedures and being pushed around by big powers. India supports an increase in the number of both permanent and non-permanent members.”
Why relevant

Describes the WTO as the institution that manages global trade rules and member decisions—implying ratification/acceptance records would be maintained by the WTO.

How to extend

A student can extend this by checking the WTO's official list of members' notifications/acceptances for the TFA to confirm India's status.

Statement 2
Is the WTO Trade Facilitation Agreement (TFA) part of the Bali Ministerial Package adopted at the 2013 WTO Bali Ministerial Conference?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
Presence: 5/5
“• Need of TFA: Red Tapism poses a burden for moving goods across borders. Trade facilitation, in terms of simplification, modernisation and harmonisation of export and import processes, has therefore emerged as an important issue for the world trading system. This led to the need of TFA.• TFA came into force in 2017. It is the result of Doha Round which occurred in 2001. Text of the TFA was adopted by WTO members during 2013 Bali Ministerial Conference.”
Why this source?
  • Explicitly states the text of the TFA was adopted by WTO members during the 2013 Bali Ministerial Conference
  • Describes TFA in the context of WTO negotiations and adoption timing tied to Bali 2013
Statement 3
Did the WTO Trade Facilitation Agreement (TFA) enter into force in January 2016?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"having entered into force on February 22, 2017, when two-thirds of WTO members, including the United States, ratified the multilateral agreement."
Why this source?
  • Directly states the date the TFA entered into force, contradicting a January 2016 entry.
  • Specifies the entry-into-force occurred when two-thirds of WTO members ratified, giving the exact date.
Web source
Presence: 5/5
"the Trade Facilitation Agreement (TFA), negotiated at WTO, came into force on 22nd February 2017."
Why this source?
  • Explicitly gives the entry-into-force date as 22nd February 2017, not January 2016.
  • Presented in an official national document (Economic Survey) confirming the same date.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > 2020 > p. 554
Strength: 4/5
“The Global Competitiveness Report is published by the (a) International Monetary Fund (b) United Nations Conference on Trade and Development (c) World Economic Forum (d) World Bank No question • 5. 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) 1, 2 and 3 (d) 2 and 3 only 6. With reference to the 'National Intellectual Property Rights Policy', consider the following statements: 1.”
Why relevant

This source presents the exact claim (TFA came into force in January 2016) as one of several answer options in an exercise, showing that this date is a commonly stated assertion in study material.

How to extend

A student could treat this as an example of a claimed date and then cross‑check with primary WTO timelines or ratification counts to verify correctness.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
Strength: 5/5
“• Need of TFA: Red Tapism poses a burden for moving goods across borders. Trade facilitation, in terms of simplification, modernisation and harmonisation of export and import processes, has therefore emerged as an important issue for the world trading system. This led to the need of TFA.• TFA came into force in 2017. It is the result of Doha Round which occurred in 2001. Text of the TFA was adopted by WTO members during 2013 Bali Ministerial Conference.”
Why relevant

This snippet explicitly states a different date: 'TFA came into force in 2017,' providing a contradicting date in the same topical literature.

How to extend

A student could use the conflicting dates (2016 vs 2017) as a prompt to check official WTO entry‑into‑force criteria (e.g., required number/weight of ratifications) and the actual ratification timeline.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > WTO'S DISPUTE SETTLEMENT MECHANISM > p. 538
Strength: 2/5
“• In case of the violation of WTO's Rules of Trade, bilateral consultation between the parties/member States is looked into as the first stage of settlement. • In case it fails, then any of the party within 60 days may request General Council for adjudication. Here, GC acts as a DSB. • The judgment of DSB may be challenged by the parties at the Appellate Body of WTO (WTOAB). • WTOAB may uphold, modify or reverse the earlier judgement of General Council. As per 2020 Annual Report of WTO, WTO members initiated 19 new disputes in 2019, half the number of 2018, but above the levels of 2016 and 2017.”
Why relevant

Mentions that activity levels (new disputes) in WTO varied across 2016 and 2017, giving temporal context around those years in WTO reporting.

How to extend

A student could look up WTO annual reports for 2015–2017 to see when the TFA is referenced as in force and whether dispute or implementation activity increased after entry.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 4: International Organisations > WTO > p. 57
Strength: 3/5
“The World Trade Organisation (WTO) is an international organisation which sets the rules for global trade. This organisation was set up in 1995 as the successor to the General Agreement on Trade and Tariffs (GATT) created after the Second World War. It has 164 members (as on 29 July 2016). All decisions are taken unanimously but the major economic powers such as the US, EU and Japan have managed to use the WTO to frame rules of trade to advance their own interests. The developing countries often complain of non-transparent procedures and being pushed around by big powers. India supports an increase in the number of both permanent and non-permanent members.”
Why relevant

Gives a concrete WTO membership snapshot '164 members (as on 29 July 2016)', which is relevant because TFA entry depended on a certain number/combination of members' ratifications.

How to extend

A student could compare the membership/ratification counts as of Jan 2016 and as of 2017 to judge whether the necessary threshold for entry was likely met in Jan 2016.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts about WTO > p. 535
Strength: 2/5
“• WTO was established on 1 January 1995 by replacing GATT. • It is an ITO dealing with a variety of issues and with the objective to promote free and fair international trade. Its scope is much broader than GATT.”
Why relevant

States foundational WTO facts (established 1995), reminding the student that agreements have formal entry procedures under WTO rules rather than automatic dates.

How to extend

A student could use this to recall that entry into force depends on ratification/notification procedures and then verify the TFA's ratification milestone dates from WTO sources.

Pattern takeaway: UPSC tests the 'Status of Implementation' for international agreements. Knowing the content is not enough; you must know if it is binding, if India has signed/ratified it, and the exact year it became operational.
How you should have studied
  1. [THE VERDICT]: Manageable Current Affairs. Stmt 2 is standard static (Bali 2013); Stmt 1 & 3 were headline news in the 12 months preceding the 2017 exam.
  2. [THE CONCEPTUAL TRIGGER]: WTO Ministerial Outcomes (Bali, Nairobi, Buenos Aires) and India's specific stance/actions within them.
  3. [THE HORIZONTAL EXPANSION]: Peace Clause (Bali), Special Safeguard Mechanism (SSM), Nairobi Package (Export subsidies elimination), Fisheries Subsidies Agreement (Geneva 2022), and TRIPS Waiver.
  4. [THE STRATEGIC METACOGNITION]: Do not stop at 'What is TFA?'. You must map the Timeline: Adoption (2013) → India's Ratification (2016) → Global Entry into Force (2017).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Trade Facilitation Agreement (TFA): purpose & Bali adoption
💡 The insight

Reference [2] describes the rationale for the TFA (reducing red tapism, simplifying and harmonising procedures) and notes the text was adopted at the 2013 Bali Ministerial Conference.

High-yield for UPSC: understanding what the TFA aims to achieve and where/when it was adopted helps answer questions on multilateral trade reforms and ministerial outcomes. Links to topics on trade policy, customs reform, and international negotiation outcomes; enables answers on ‘why’ and ‘how’ trade facilitation matters for developing countries.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
🔗 Anchor: "Has India ratified the World Trade Organization's Trade Facilitation Agreement (..."
📌 Adjacent topic to master
S1
👉 TFA: entry-into-force and timelines
💡 The insight

Reference [2] states the TFA 'came into force in 2017', highlighting the timeline from adoption to entry-into-force.

Timeline knowledge is often tested (adoption vs. entry-into-force vs. implementation). Useful for essay and prelims/sts where dates and sequence of WTO agreements are asked; connects to broader study of how international treaties become binding.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
🔗 Anchor: "Has India ratified the World Trade Organization's Trade Facilitation Agreement (..."
📌 Adjacent topic to master
S1
👉 WTO structure and decision-making
💡 The insight

Reference [5] outlines WTO's role as the rule-setting body for global trade and notes decision-making practices.

Core conceptual background: UPSC frequently asks about the WTO’s functions, member dynamics, and negotiation processes. Mastering this helps contextualise agreements like the TFA and predict implementation/ratification challenges across members.

📚 Reading List :
  • Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 4: International Organisations > WTO > p. 57
🔗 Anchor: "Has India ratified the World Trade Organization's Trade Facilitation Agreement (..."
📌 Adjacent topic to master
S2
👉 Trade Facilitation Agreement (TFA) — adoption event
💡 The insight

Reference [2] links the TFA's text directly to adoption at the 2013 Bali Ministerial Conference.

High-yield for UPSC: questions often ask which agreements were adopted at specific WTO ministerials. Mastering the adoption events helps answer timeline and multilateral-negotiation questions and connects to trade-policy developments.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
🔗 Anchor: "Is the WTO Trade Facilitation Agreement (TFA) part of the Bali Ministerial Packa..."
📌 Adjacent topic to master
S2
👉 Doha Round (Doha Development Agenda) and downstream agreements
💡 The insight

Reference [2] connects the TFA to the Doha Round; reference [3] explains the Doha Round's origins and aims.

Important for mapping continuity in WTO negotiations — how issues from Doha led to later outcomes (like TFA). Useful for questions on evolution of multilateral trade agendas and negotiating bundles.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.12 WTO – Doha Development Agenda > p. 391
🔗 Anchor: "Is the WTO Trade Facilitation Agreement (TFA) part of the Bali Ministerial Packa..."
📌 Adjacent topic to master
S2
👉 WTO ministerial conferences & how WTO agreements are adopted
💡 The insight

References describe ministerial conferences as venues for negotiations and adoption of WTO texts (e.g., Bali 2013) and that WTO agreements arise from member negotiations.

Core concept: UPSC often tests institutional processes (decision-making, ministerials). Understanding that ministerials adopt package agreements helps answer procedural and policy-history questions across international institutions.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > The following are some of the important features regarding WTO > p. 378
🔗 Anchor: "Is the WTO Trade Facilitation Agreement (TFA) part of the Bali Ministerial Packa..."
📌 Adjacent topic to master
S3
👉 TFA origin: Bali Ministerial Conference (2013)
💡 The insight

Evidence explicitly links the TFA text to adoption at the 2013 Bali Ministerial Conference.

High-yield for UPSC: questions often ask where/when major WTO outcomes were adopted (ministerial conferences). Knowing Bali-2013 anchors timelines and links to broader WTO negotiation history; useful for questions on multilateral trade diplomacy and trade reform packages.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > TRADE FACILITATION AGREEMENT (TFA) of WTO > p. 545
🔗 Anchor: "Did the WTO Trade Facilitation Agreement (TFA) enter into force in January 2016?"
🌑 The Hidden Trap

Agreement on Fisheries Subsidies (2022). Like TFA, this is the next major WTO accord. Watch its 'Entry into Force' condition (acceptance by 2/3rd members) and India's ratification status closely.

⚡ Elimination Cheat Code

The 'Clean Date' Trap. Stmt 3 claims 'January 2016'. International treaties rarely enter into force on a perfect calendar start (Jan 1st) unless specified years in advance. They usually trigger X days after the Nth ratification (e.g., Feb 22, 2017). Be skeptical of 'clean' months like January in date-based statements.

🔗 Mains Connection

GS-3 (Infrastructure/Logistics): TFA compliance is the legal backbone for India's 'National Logistics Policy' and 'PM Gati Shakti', aiming to reduce logistics costs from 14% of GDP to single digits.

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