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Q82 (IAS/2017) International Relations & Global Affairs › India's Bilateral & Regional Relations › India–EU relations Official Key

'Broad-based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the context of negotiations held between India and

Result
Your answer: —  ·  Correct: A
Explanation

The correct answer is option A - European Union.

The Broad-based Trade and Investment Agreement (BTIA) negotiations between India and the European Union started in 2007[3], representing a comprehensive free trade agreement aimed at enhancing bilateral economic cooperation. Sixteen rounds of talks were held till 2013, after which the EU withdrew from the negotiations[1]. The BTIA was designed to cover trade in goods, services, and investment between India and the EU bloc. This agreement has been in the news periodically due to efforts to revive these stalled negotiations and the significant economic implications for both parties. There is no evidence in the sources or established records of India pursuing BTIA negotiations with the Gulf Cooperation Council, OECD, or Shanghai Cooperation Organization, making these options incorrect.

Sources
  1. [1] https://www.bilaterals.org/?india-ready-to-resume-btia-talks
  2. [2] https://www.business-standard.com/article/economy-policy/india-eu-14th-summit-modi-tusk-agree-on-boosting-trade-combating-terror-117100600565_1.html
  3. [3] https://www.eicbi.org/post/unlocking-the-potential-a-comprehensive-analysis-of-the-india-eu-free-trade-agreement
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Q. 'Broad-based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the context of negotiations held between India and …
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 7.5/10
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This is a classic 'Term in News' question. BTIA was a recurring headline due to stalled negotiations between India and the EU. While static books explain FTAs/RTAs generally, the specific acronym 'BTIA' is pure current affairs property. If you read newspapers, this was a 2-second sitter; if not, it was a blind guess.

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
Were there Broad-based Trade and Investment Agreement (BTIA) negotiations between India and the European Union?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"India-EU BTIA negotiations started in 2007 and 16 rounds of talks had been held till 2013, after which EU withdrew from the negotiations."
Why this source?
  • Explicitly states when BTIA negotiations began and how many rounds were held, showing negotiations occurred.
  • Notes continuation and subsequent pause/withdrawal, confirming substantive negotiation activity.
Web source
Presence: 5/5
"Launched in June 2007, the negotiations for the proposed EU-India Broad-based Trade and Investment Agreement (BTIA) have witnessed many hurdles ..."
Why this source?
  • Directly refers to the launch date of the negotiations for the EU-India BTIA.
  • Describes the negotiations as having encountered hurdles, indicating active negotiation history.
Web source
Presence: 5/5
"In 2007, the negotiations for a Free Trade Agreement (FTA) between India and the EU, officially called the Bilateral Trade and Investment Agreement (BTIA), kicked off."
Why this source?
  • States that negotiations for the FTA, officially called the Bilateral Trade and Investment Agreement (BTIA), 'kicked off' in 2007.
  • Places the BTIA explicitly as the negotiated agreement between India and the EU.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 5. WTO Reforms: > p. 393
Strength: 4/5
“Increasing protectionism, inadequate members in the Appellate Tribunal for dispute resolution, increasing number of Regional Trade Agreements (RTAs) and Free Trade Agreements (FTAs) etc. have resulted in member countries questioning the efficacy of WTO as an institution meant to ensure free trade and promote multilateralism. In the ongoing discussions on WTO reforms, India's proposal seeks to re-affirm the importance of development and promote inclusive growth. The broad elements of India's proposal include: • Preserving the core values of the Multilateral Trading System;• Resolving the impasse in the Dispute Settlement System;• Safeguarding development concerns; and• Transparency and Notifications.”
Why relevant

Notes the growing number of Regional Trade Agreements (RTAs) and Free Trade Agreements (FTAs) as a prominent pattern in trade policy discussions.

How to extend

A student could use this pattern to check whether India and the EU, as major trading partners, engaged in a bilateral RTA/FTA-style negotiation such as a BTIA by consulting timelines of RTAs/FTAs involving India and the EU.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 3: Money and Banking - Part II > Bilateral Investment Treaties (BIT): > p. 145
Strength: 4/5
“in either State. When countries enter into a BIT, both countries agree to provide protections for the other country's foreign investments that they would not otherwise have. A BIT provides major benefits for investors in another country, including national treatment, fair and equitable treatment, protection from expropriation and performance requirements for investments, and access to neutral dispute settlement (international arbitration) etc. The first BIT was signed by India on March 14, 1994. Since then, the Government of India has signed BITs with more than 80 countries. Recently, India has terminated its bilateral investment treaties (BIT) with 57 countries. In Dec 2015, The Union Cabinet gave its approval for the revised Model Text for the Indian Bilateral Investment Treaty.”
Why relevant

Explains that India signs bilateral investment treaties (BITs) to protect investments and actively revises/terminates such treaties.

How to extend

Knowing India negotiates investment-protection agreements, a student could look for combined trade-and-investment negotiation formats (BTIA) between India and large partners like the EU in government or EU negotiation records.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Regional Comprehensive Economic Partnership (RCEP) > p. 394
Strength: 3/5
“The 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.”
Why relevant

Describes India's participation and withdrawal from a multilateral trade-investment pact (RCEP), showing India engages (and withdraws) from comprehensive trade-investment negotiations.

How to extend

Using this example of India negotiating comprehensive agreements, a student might reasonably search whether India entered similar comprehensive bilateral talks with the EU (i.e., a BTIA).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.6 Trade Related Investment Measures (TRIMS) > p. 383
Strength: 3/5
“The Agreement on TRIMs of the WTO is based on the belief that there is strong connection between trade and investment. Restrictive measures on investment are”
Why relevant

States the close connection between trade and investment in international agreements (TRIMs basis), suggesting combined trade-investment talks are a recognized category.

How to extend

A student could use this rule to expect that trade negotiations between major partners often include investment chapters and thus seek evidence of a combined ‘trade and investment’ negotiation (BTIA) between India and the EU.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > E-commerce and WTO: > p. 243
Strength: 2/5
“India has thus far not been a party to negotiations on e-Commerce at the multilateral level. These negotiations, under WTO, are intended to create binding obligations on all the WTO member countries regarding (among other things) permanently accepting the moratorium on imposing customs duties on electronic transmissions. By agreeing to the permanent moratorium (India has agreed not to impose customs duty temporarily for the time being), countries which have tariff schedules, which allow putting duties on these kinds of products, will give up these rights forever and lose revenues.”
Why relevant

Indicates India’s selective participation in multilateral e-commerce/trade talks, implying India evaluates binding international obligations carefully.

How to extend

Given India’s caution on multilateral obligations, a student could look for records showing whether India chose to enter bilateral comprehensive negotiations (BTIA) with the EU or refrained for similar reasons.

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Statement analysis

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Statement analysis

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