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Q87 (IAS/2023) International Relations & Global Affairs › International Organisations & Groupings › International trade regimes Official Key

Consider the following statements : Statement-I : Recently, the United States of America (USA) and the European Union (EU) have launched the Trade and Technology Council'. Statement-II : The USA and the EU claim that through this they are trying to bring technological progress and physical productivity under their control. Which one of the following is correct in respect of the above statements?

Result
Your answer: —  ·  Correct: C
Explanation

The correct answer is Option 3 because Statement-I is factually accurate, while Statement-II misrepresents the objectives of the initiative.

Statement-I is correct: The USA and the European Union officially launched the Trade and Technology Council (TTC) during the EU-US Summit in June 2021. It serves as a high-level strategic forum to coordinate approaches to key global trade, economic, and technology issues based on shared democratic values.

Statement-II is incorrect: The stated goal of the TTC is not to bring productivity "under their control" in a restrictive sense. Instead, it aims to foster transatlantic cooperation, strengthen supply chains, promote responsible innovation, and set global standards for emerging technologies. The focus is on democratic sovereignty and competitiveness against non-market economies, rather than monopolistic control over physical productivity. Therefore, Statement-II is a false characterization of the council's diplomatic and economic mandate.

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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. Consider the following statements : Statement-I : Recently, the United States of America (USA) and the European Union (EU) have launched…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 10/10

This is a classic 'Headline vs. Fine Print' trap. While the launch (Statement I) was widely covered in newspapers, Statement II uses extreme, non-market language ('control physical productivity') to test your common sense about Western economic philosophy. It's a logic test disguised as a fact question.

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
When was the United States–European Union Trade and Technology Council (TTC) launched and which parties established it?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"the Trade and Technology Council (TTC) effort launched last June 2021,"
Why this source?
  • Explicitly states the TTC launch timing.
  • Provides the month and year the TTC was launched (June 2021).
Web source
Presence: 5/5
"The United States–European Union Trade and Technology Council (TTC) was the principal coordination mechanism through which the United States engaged the EU on trade policy during 2022. Across ten TTC working groups, the United States and the EU are pursuing policy outcomes on trade and technology"
Why this source?
  • Identifies the full name of the TTC linking the United States and the European Union.
  • Describes the TTC as the coordination mechanism through which the United States engaged the EU, showing the two parties that established it.

History , class XII (Tamilnadu state board 2024 ed.) > Chapter 15: The World after World War II > European Union Flag - Euro Currency > p. 258
Strength: 4/5
“In December 1991, the members of EC came together and signed the Treaty of Maastricht by which the European Union was established in 1993 with a single market. With the establishment of European Union, the members worked on other areas such as foreign policy and internal security. This treaty paved the way for the creation of a single European currency – the euro. In 2017, Britain voted to exit the EU (British Exit known as "Brexit").”
Why relevant

Explains the establishment and institutional identity of the European Union (dates of formation), which identifies one party in any EU–level institution or partnership.

How to extend

A student could combine the EU's existence (1992–93) with current affairs sources to seek when an EU-wide council with the US might have been launched and by whom.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > European Union > p. 16
Strength: 4/5
“The Council of Europe, established in 1949, was another step forward in political cooperation. The process of economic integration of European capitalist countries proceeded step by step (see Timeline of European Integration) leading to the formation of the European Economic Community in 1957. This process acquired a political dimension with the creation of the European Parliament. The collapse of the Soviet bloc put Europe on a fast track and resulted in the establishment of the European Union in 1992. The foundation was thus laid for a common foreign and security policy, cooperation on justice and home affairs, and the creation of a single currency.”
Why relevant

Gives the timeline and political evolution that created the EU as a coherent actor in foreign/economic policy—useful to know the EU can enter formal councils with external partners.

How to extend

Use this background to narrow searches to EU-level announcements (rather than individual member states) when verifying who set up the TTC and when.

History , class XII (Tamilnadu state board 2024 ed.) > Chapter 15: The World after World War II > EEC in Session > p. 257
Strength: 3/5
“The EEC facilitated the elimination of barriers to the movement of goods, services, capital, and labour. It also prohibited public policies or private agreements that restricted market competition. A Common Agricultural Policy (CAP) and a common external trade policy were evolved. In 1960, Britain organized a rival organization known as the European Free Trade Association (EFTA), with Britain, Denmark, Norway, Sweden, Switzerland, Austria, and Portugal as members. In 1961 Britain decided to join EEC but the French President Charles de Gaulle opposed the entry because the economy of Britain was weak. After his resignation, British Prime Minister Edward Heath, with his skilful diplomacy, made way for Britain's entry.”
Why relevant

Describes the EEC/EU role in eliminating trade barriers and developing common external trade policy—illustrates the EU's capacity to form trade/technology partnerships.

How to extend

A student could infer such institutional trade roles make the EU the natural counterpart to the United States in a transatlantic Trade and Technology Council, then check news/official releases for launch details.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Important Facts about WTO > p. 535
Strength: 3/5
“• 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

Summarizes the creation of an international trade organisation (WTO) and the norm of formal institutions to manage trade—shows precedent for establishing dedicated trade councils.

How to extend

Use the pattern that major trade issues are handled by formal bodies to justify searching for an official launch event and the parties (i.e., national/regional governments) that created the TTC.

History , class XII (Tamilnadu state board 2024 ed.) > Chapter 12: Europe in Turmoil > Introduction > p. 178
Strength: 2/5
“Soon began to feel that without organisation and unity, no permanent improvement was possible. So they strove to establish trade unions. When trade unions arose, the government first declared these unions illegal. Many of the frontline leaders, as we have seen in the previous lesson, were imprisoned or banished. In 1824, however, labour unions were legalised. Concert of Europe: Founded by major European Powers, Austria, Prussia, Russia and Britain, in the post-Napoleonic era, it worked for the preservation of European Metternich order and balance of power. Under the pretext of political status quo, the great powers under the aegis of Concert of Europe intervened and imposed their collective will on states threatened by internal rebellion during the socalled Metternich Era (1815–1848).”
Why relevant

Gives an historical example (Concert of Europe) where major powers collectively founded a coordinating body—a pattern of great-power councils for cooperation.

How to extend

Apply this pattern to modern great-power relations to hypothesize that leading powers (the United States and the EU as a bloc) could jointly establish a council, then verify the specific participants and date from contemporary sources.

Statement 2
Do official United States and European Union statements describe the Trade and Technology Council as intending to bring technological progress and "physical productivity" under US and EU control?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"Working in collaboration with European partners, including through the U.S.-EU Trade and Technology Council, we can protect our supply chains and intellectual property rights, facilitate technological advancements, and shape the economic rules of the road for the 21st century economy."
Why this source?
  • Official U.S. State Department text links the U.S.-EU Trade and Technology Council to active steps on technology policy.
  • It explicitly says the Council can "facilitate technological advancements" and "shape the economic rules of the road," which indicates intent to shape/guide technological progress.
Web source
Presence: 4/5
"The United States–European Union Trade and Technology Council (TTC) was the principal coordination mechanism through which the United States engaged the EU on trade policy during 2022. Across ten TTC working groups, the United States and the EU are pursuing policy outcomes on trade and technology that align with our shared values and promote a rules-based economic system."
Why this source?
  • A U.S. Trade Representative report describes the TTC as the principal coordination mechanism for U.S.-EU trade policy.
  • It states the US and EU are "pursuing policy outcomes on trade and technology" that align with shared values — showing active policy-direction over technology and related economic activity.
Web source
Presence: 4/5
"that digital technologies would create trade and thus growth opportunities, but also help the US and EU shape the production, distribution and governance of technology in a way which would boost democracy and human rights.7 ... As Jake Sullivan, President Biden’s National Security Adviser, said, “We plan to align our approaches to trade and technology so that democracies and not"
Why this source?
  • An academic analysis cites official language noting the US and EU aim to "shape the production, distribution and governance of technology."
  • It quotes a senior U.S. official saying the US and EU "plan to align our approaches to trade and technology," indicating intent to coordinate control/management of technological direction.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.3Information Technology Agreement (ITA) > p. 383
Strength: 4/5
“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 that trade agreements (e.g., the Information Technology Agreement) explicitly target high-technology products and supply chains.

How to extend

A student could check whether the TTC's remit/language mirrors ITA-style coverage (semiconductors, telecoms, etc.) to infer if TTC statements aim to shape control over tech goods.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Technology Mechanism > p. 328
Strength: 4/5
“A Technology Mechanism, under the guidance of and accountable to the Conference of the Parties. (COP), was established by the 6th session of the COP in Cancun. The Technology Mechanism is expected to facilitate the implementation of enhanced action on technology development and transfer in order to support action on mitigation and adaptation to climate change.”
Why relevant

Describes an institutional 'Technology Mechanism' set up to facilitate technology development and transfer under an international body, illustrating how treaties create formal mechanisms to manage technology flows.

How to extend

Compare the TTC's stated functions to this model of governance to see if TTC statements frame technology transfer as something to be coordinated or controlled by US/EU bodies.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > European Union > p. 17
Strength: 3/5
“members, especially from the erstwhile Soviet bloc. The process has not proved easy, for people in many countries are not very enthusiastic in giving the EU powers that were exercised by the government of their country. There are also reservations about including some new countries within the EU. The EU has economic, political and diplomatic, and military influence. The European Union's GDP is projected to be approximately $19.35 trillion in the year 2024. Its currency, the euro, can pose a threat to the dominance of the US dollar. Its share of world trade is much larger than that of the United States allowing it to be more assertive in trade disputes with the US and China.”
Why relevant

Explains the EU's large share of world trade and its capacity to be 'assertive in trade disputes', implying institutional leverage to influence technology and trade policy.

How to extend

Use this to judge whether TTC rhetoric about 'cooperation' could be operationalized by the EU's existing trade leverage to shape technological outcomes.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > TRADE POLICY > p. 53
Strength: 3/5
“Import Policy-that too for three years–was promulgated. It had three-fold objectives: • 1. To stimulate industrial growth by providing easy access to essential imported capital goods, raw materials, and components to industry.• 2. To sustain the movement towards modernisation and technological upgradation.• 3. To make the industry progressively competitive internationally. The enforcement of the policy, however, has been sectoral and tentative, and it has been more or less like a declaration of intentions and objectives rather than a policy strategy of action. It is also not clear why the formulation of a national trade policy and its declaration had to wait until 2004.”
Why relevant

States' import policies explicitly aim to 'sustain ... technological upgradation' and modernisation, showing governments use trade policy to steer technological progress and productivity.

How to extend

A student could test if TTC language parallels national import-policy goals—i.e., seeks to direct tech flows to boost 'physical productivity' under allied control.

Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > TIMELINE OF EUROPEAN INTEGRATION > p. 18
Strength: 2/5
“2013: Croatia becomes the 28th member of the EU. 2016: Referendum in Britain, 51.9 per cent voters decide that Britain exit (Brexit) from the EU. economic organisations such as the World Trade Organisation (WTO). The EU also has political and diplomatic influence. One member of the EU, France, holds permanent seat on the UN Security Council. The EU includes several nonpermanent members of the UNSC. This has enabled the EU to influence some US policies such as the current US position on Iran's nuclear programme. Its use of diplomacy, economic investments, and negotiations rather than coercion and military force has been effective as in the case of its dialogue with China on human rights and environmental degradation.”
Why relevant

Notes the EU's use of diplomacy, economic investments and negotiations (rather than force) to influence other states on issues including human rights and environment—an example of soft leverage in international policy domains.

How to extend

Apply this pattern to technology: examine whether TTC statements employ similar diplomatic/economic instruments to steer technological progress and productivity.

Pattern takeaway: UPSC creates false statements by swapping democratic policy goals (regulation/standards) with authoritarian keywords (control/dominance). Always check if the verb matches the political philosophy of the countries involved.
How you should have studied
  1. [THE VERDICT]: Trap. Statement I is standard Current Affairs (The Hindu/IE International Page), but Statement II is a 'Language Trap'.
  2. [THE CONCEPTUAL TRIGGER]: The shift from Globalisation to 'Strategic Autonomy' and 'Friend-shoring' in the post-COVID world.
  3. [THE HORIZONTAL EXPANSION]: Memorize sibling strategic tech alliances: iCET (India-US), Minerals Security Partnership (MSP), Supply Chain Resilience Initiative (SCRI), and the 'Chip 4' Alliance. Know the difference between 'Decoupling' and 'De-risking'.
  4. [THE STRATEGIC METACOGNITION]: When reading about US/EU bodies, apply the 'Market Economy Filter'. Western alliances aim for 'coordination', 'standards', or 'resilience'. They never aim for 'control of physical productivity'—that is command-economy language. Use this ideological mismatch to spot fake statements.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Maastricht Treaty and the founding dates of the EU
💡 The insight

Knowing the Maastricht Treaty and the year the EU was established frames timelines for later EU external initiatives and institutions.

High-yield: questions often require dating major EU milestones and linking legal foundations to contemporary policies. This concept connects to EU foreign policy, trade agreements, and institutional authority, enabling chronological and institutional analysis in answers.

📚 Reading List :
  • History , class XII (Tamilnadu state board 2024 ed.) > Chapter 15: The World after World War II > European Union Flag - Euro Currency > p. 258
  • Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > European Union > p. 16
🔗 Anchor: "When was the United States–European Union Trade and Technology Council (TTC) lau..."
📌 Adjacent topic to master
S1
👉 Timeline of European economic integration (ECSC → EEC → EU)
💡 The insight

The sequential stages of integration explain how economic and political cooperation progressed to create a unified market affecting trade policy.

High-yield: UPSC often asks about the evolution of regional integration and its impact on trade regimes; mastering this helps analyse the EU's negotiation capacity and the historical basis of its trade and technology posture.

📚 Reading List :
  • Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > TIMELINE OF EUROPEAN INTEGRATION > p. 18
  • History , class XII (Tamilnadu state board 2024 ed.) > Chapter 15: The World after World War II > EEC in Session > p. 257
🔗 Anchor: "When was the United States–European Union Trade and Technology Council (TTC) lau..."
📌 Adjacent topic to master
S1
👉 Features of an Economic Union
💡 The insight

Distinct features of an economic union clarify what common policies and freedoms the EU can exercise in external trade and economic coordination.

High-yield: comparative questions test differences between customs union, common market and economic union; this aids essays and policy analysis on regional trade blocs and how collective economic policy affects international agreements.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Economic Union Commenting Unions Currency > p. 504
🔗 Anchor: "When was the United States–European Union Trade and Technology Council (TTC) lau..."
📌 Adjacent topic to master
S2
👉 Information Technology Agreement (ITA) — scope and impact
💡 The insight

The ITA eliminates tariffs on a wide range of high-technology products (computers, telecom equipment, semiconductors and related parts), shaping how countries trade advanced technologies.

High-yield for UPSC because it links trade liberalization to technology diffusion and industrial policy; helps analyse how plurilateral WTO arrangements affect domestic manufacturing competitiveness and international supply chains. Useful for questions on trade policy, technology trade, and multilateral negotiations.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.5.3Information Technology Agreement (ITA) > p. 383
🔗 Anchor: "Do official United States and European Union statements describe the Trade and T..."
📌 Adjacent topic to master
S2
👉 EU's economic influence in global trade and diplomacy
💡 The insight

The EU's large GDP, substantial share of world trade, and diplomatic tools give it leverage in trade disputes and capacity to influence other major powers' policies.

Essential for UPSC aspirants to evaluate the EU as an international actor—relevant to questions on comparative economic power, currency influence, and trade diplomacy. Connects to topics on geopolitical competition, trade negotiations, and multilateral institutions.

📚 Reading List :
  • Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > European Union > p. 17
  • Contemporary World Politics, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 2: Contemporary Centres of Power > TIMELINE OF EUROPEAN INTEGRATION > p. 18
🔗 Anchor: "Do official United States and European Union statements describe the Trade and T..."
📌 Adjacent topic to master
S2
👉 Technology Mechanism under UNFCCC — role in technology development and transfer
💡 The insight

The Technology Mechanism is designed to facilitate technology development and transfer to support mitigation and adaptation actions in climate policy.

Important for environment and international relations sections: links climate governance to technology transfer, capacity building, and international cooperation. Prepares candidates for questions on climate finance, technology transfer obligations, and institutional mechanisms under COP.

📚 Reading List :
  • Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > Technology Mechanism > p. 328
🔗 Anchor: "Do official United States and European Union statements describe the Trade and T..."
🌑 The Hidden Trap

The 'Minerals Security Partnership' (MSP). Just as TTC secures tech, MSP secures critical minerals (Lithium, Cobalt). India was inducted recently. Expect a question on its members (14 countries + EU) or its specific goal (breaking Chinese monopoly).

⚡ Elimination Cheat Code

The 'Capitalist Litmus Test'. The US and EU are free-market economies. They do not claim to bring 'physical productivity' (a factory-level metric) under state control. That phrasing sounds like a Soviet Five-Year Plan. If a statement attributes 'total control of production' to the US/EU, it is 99% False.

🔗 Mains Connection

Mains GS-2 (IR) & GS-3 (Security): The TTC is an example of the 'Weaponization of Interdependence'. Use it to argue how trade is no longer just economics but national security, forcing India to pursue 'Atmanirbhar Bharat' in semiconductors.

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