International Relations
International Trade
Welcome to the UPSC Study Hub for International Trade, a critical and dynamic component of your International Relations and Economy preparation. Understanding international trade is not merely about memorizing definitions;
60 articles in this topic
Articles on International Trade
India–US Signed Trade Agreement
In News India and the United States have announced a new trade deal, lowering tariffs and setting ambitious targets for bilateral trade. About the India–US Trade Deal Tariff reduction: US reciprocal tariffs on Indian goods reduced from 25% to 18%, effective immediately. Additional 25% duty withdrawn, which had earlier been imposed.
IMEC’s Relevance to India and its Chokepoints
Context The current reciprocal tariff policies and protectionism by the US is a bad sign for the development of a multi-state, multimodal transport and trade corridor like the India–Middle East–Europe Economic Corridor (IMEC). About For almost all the participating nations except the US, IMEC does not represent a geopolitical contest. Instead, it serves as economic insurance to future-proof global trade in an era marked by supply-chain shocks, geopolitical fragmentation, and climate stress.
India-Australia: A Tariff-Free Era & Further Strengthening Trade Pact
Published on: 01 January, 2026 India and Australia now stand at a pivotal moment to deepen their strategic and economic partnership with tariffs eliminated under the India-Australia Economic Cooperation and Trade Agreement (ECTA).
The US Push to Redefine the WTO
Context The US recently articulated its vision for reforming the World Trade Organization (WTO). Major Highlights of the US Suggested Reforms Decision-Making (Plurilateralism): The US argues consensus among 166 members is unrealistic for new trade rules. It supports plurilateral agreements among willing members as the future of WTO rule-making.
India’s Gain From RCEP Without Risking China
Context India has since managed to strategically position itself to reap many of the benefits of Regional Comprehensive Economic Partnership (RCEP) without formally joining the bloc or compromising its economic sovereignty or exposing itself to the vulnerabilities associated with Chinese market dominance. RCEP and India’s 2019 Exit The RCEP includes the 10 ASEAN nations(Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) plus Australia, China, Japan,
India-Oman Trade and Investment Ties Deepen
Context India and Oman have signed the Comprehensive Economic Partnership Agreement (CEPA). This is the first bilateral agreement that Oman has signed with any country since the United States of America in 2006. Major Highlights FTA: Negotiations for the agreement began officially in 2023.
Cabinet Approves India-Oman Free Trade Pact
Context The Union Cabinet has approved the proposed Free Trade Agreement between India and Oman. About The Comprehensive Economic Partnership Agreement approval comes ahead of the Prime Minister’s three-nation tour to Jordan, Ethiopia and Oman. It was approved by the lower house of Parliament of Oman as well.
India-Eurasian Economic Union (EAEU)
In News India and Russia reiterated their resolve to achieve $100 billion bilateral trade by 2030 in Moscow and reviewed steps for the India-Eurasian Economic Union (EAEU) free trade agreement in goods. About Eurasian Economic Union (EAEU) The EAEU is an international economic union and free trade zone comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, established by the Treaty on the Eurasian Economic Union in 2014 and effective since January 2015. The Union pursues the free movem
India, Nepal Ink Pact to Step Up Trade Ties
Context India and Nepal have amended the Treaty of Transit to facilitate the movement of rail-based freight between Jogbani in India and Biratnagar in Nepal. About This liberalisation extends to key transit corridors — Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli), and Visakhapatnam-Nautanwa (Sunauli). Aim: To strengthen multimodal trade connectivity between the two countries and Nepal’s trade with third countries.
China’s Complaint Against India at WTO
Context China has filed a complaint with the World Trade Organization (WTO) against India. Law on subsidies in WTO Legal Framework: Governed by the Agreement on Subsidies and Countervailing Measures (SCM Agreement) under the WTO. Sovereign Right vs.
India Faces Highest CBAM Levy Among EU Trade Partners
Context According to European think-tank Sandberg, Indian iron and steel exporters face the highest Carbon Border Adjustment Mechanism (CBAM) fees to the EU, estimated at €301 million. Carbon Border Adjustment Mechanism (CBAM) CBAM is the European Unions tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. CBAM is one of the elements of the EU Green Deal, the go
India and Brazil to Expand Trade Pact with Mercosur
Context Recently, India and Brazil agreed to expand the scope of the existing Preferential Trade Agreement (PTA) under MERCOSUR bloc, aiming to include more sectors and products. India and MERCOSUR Relations: Historical Background India signed a Framework Agreement with MERCOSUR in 2003, followed by a Preferential Trade Agreement (PTA) in 2004, which came into effect in 2009. The PTA covers 450 product lines, offering mutual tariff concessions on items like pharmaceuticals, chemicals, textiles,
Weaponising Health Care: US Tariffs on Patented Drugs
The recent announcement of 100% tariffs on imports of patented medicines by the United States (US) has effectively weaponised access to healthcare in the US.
USA’s 50% Tariffs on Indian Exports and Its Implications
Context The United States has imposed 50% tariffs on a wide range of Indian merchandise exports starting August 27, 2025. About The move combines the 25% tariff announced in July 2025 and an additional 25% “penalty tariff” in August 2025 linked to India’s purchases of Russian oil and defence imports. Key sectors affected include textiles, apparel, gems and jewellery, shrimp, carpets, leather, and furniture — all of which are labour-intensive and job-generating industries.
India, EAEU Sign ToR to Begin Free Trade Agreement Negotiations
In News India and the Eurasian Economic Union (EAEU) signed the Terms of Reference (ToR) to launch negotiations on a Free Trade Agreement (FTA) in Moscow. Eurasian Economic Union (EAEU) The Eurasian Economic Union (EAEU) is an international organization of regional economic integration with international legal personality. Its goal is to enhance cooperation, boost competitiveness, and support the stable development of member economies.
U.S. Tariffs on India: Implications and Policy Options
In News In August 2025, U.S. President Donald Trump imposed a 50% tariff on imports from India, including a 25% penalty related to India’s oil purchases from Russia. India’s vulnerabilities in the global system.
US Imposes 25% Tariff on India’s Exports
Context Recently, the US President has announced a 25% tariff on all imports from India, effective August 1, 2025, along with an unspecified penalty for India’s continued purchases of Russian oil and military equipment. Why the US Imposed a 25% Tariff on Indian Imports? High Indian Tariffs on US Goods: India’s high tariffs on U.S.
On India-United Kingdom Comprehensive Economic and Trade Agreement
India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), marking a watershed moment in bilateral relations and economic diplomacy. CETA emerges as India’s first free trade pact with a G7 nation and the UK’s most ambitious trade agreement outside Europe.
India-U.K’s Comprehensive Economic Trade Agreement (CETA)
Context India and the United Kingdom signed a Comprehensive Economic Trade Agreement (CETA) during Prime Minister Narendra Modi’s visit to the U.K. About This marks India’s first major FTA in over a decade and the UK’s fourth since its exit from the European Union (EU) in 2020. India and the UK finalized the trade pact following over three years of negotiations.
BRICS Condemned European Union’s CBAM
Context BRICS nations have “condemned and rejected” the Carbon Border Adjustment Mechanisms (CBAM) of the European Union (EU) and similar restrictive trade measures, saying they undermine their transition to a cleaner economy. CBAM CBAM is an import duty imposed by the European Union (EU) on goods produced by processes that lead to more carbon emissions than domestic European manufacturers are allowed to emit. It is introduced to put a “fair price” on carbon-intensive goods imported from non-EU