UPSC Prelims 2017 Q82: Current Affairs – International Relations & Treaties
'Broad - based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the
context of negotiations held between India and
- (a) European Union
- (b) Gulf Cooperation Council
- (c) Organization for Economic Cooperation and Development
- (d) Shanghai Cooperation Organization
Answer: (a) European Union
Explanation
Broad-based Trade and Investment Agreement (BTIA)
The BTIA is the proposed free trade agreement between India and the European Union.
| Year | Event |
|---|---|
| 2007 | Negotiations launched |
| 2013 | Talks stalled |
| 2022 | Negotiations formally resumed |
Sticking points:
| Issue | Who wants what |
|---|---|
| Cars, wines and spirits | EU wants lower Indian tariffs |
| Data-secure status | India wants it for its IT sector |
| Movement of professionals | India wants easier visas |
| Intellectual property | EU wants stricter rules |
The other options:
| Option | Fact |
|---|---|
| (b) Gulf Cooperation Council | A separate India-GCC trade pact is under talks |
| (c) Organization for Economic Cooperation and Development | India is not a member and has no such pact |
| (d) Shanghai Cooperation Organization | A security grouping, not a trade bloc |
Answer: (a) European Union.
Why each option is right or wrong
- (a) CORRECT. The BTIA is the trade and investment pact negotiated with the European Union.
- (b) Incorrect. Talks with the Gulf Cooperation Council are for a separate free trade agreement.
- (c) Incorrect. The OECD is a policy forum and does not negotiate such agreements.
- (d) Incorrect. The Shanghai Cooperation Organization is a security grouping.
Key point
BTIA = India-European Union free trade agreement; negotiations launched in 2007, stalled in 2013, resumed in 2022.
Remember
BTIA = India and European Union.
Common mistakes
- Confusing the BTIA with CECA or CEPA, the names used for pacts with Asian partners.
- Thinking the talks were concluded in 2013; they stalled.
- Mixing up the EU with the EFTA, which signed a separate pact with India.
Exam tip
BTIA is used only for the India-EU deal. CEPA and CECA are used for other partners.
Sources
- Ministry of Commerce and Industry — India-EU Broad-based Trade and Investment Agreement negotiations
- European Commission — EU-India trade negotiations