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 Tells WTO it May Levy Retaliatory Tariffs on U.S. Imports
Context The Indian government has notified the World Trade Organization (WTO) of its proposal to levy retaliatory tariffs amounting to nearly $724 million on the U.S.. About The move follows the United States’ decision to extend safeguard tariffs—amounting to a 25% ad valorem increase—on imports of passenger vehicles, light trucks, and certain automobile components from India. The proposed suspension of concessions by India or other obligations would take the form of an increase in tariffs on se
India-US Trade Deal To Finalise Soon
Context In a recent address, the US President signaled the possibility of a ‘very big’ trade deal with India, suggesting that negotiations between the two nations are gaining momentum. Key Concerns in US-India Trade Relations Tariff Disparities: India maintains one of the highest average applied tariffs among G20 nations — around 17%, compared to the US average of 3.3%. India is seeking full exemption from these duties.
Reconsidering CPTPP, Integrating with ASEAN & EU
In an era marked by rising protectionism and fractured global trade alliances, India needs to reconsider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and deepen its integration with ASEAN and the European Union (EU) to safeguard its economic future.
India-ASEAN Trade Deal Review
Context Over the last one year, India has held nine meetings with the Association of Southeast Asian Nations (ASEAN) to review the trade agreement signed with the grouping, but no progress has been made on any item. About The original agreement was signed in 2009. India opened 71% of its tariff lines to the ASEAN countries whereas countries like Indonesia opened 41%, Vietnam 66.5%, and Thailand 67%.
India Pushes for WTO Reforms at Paris Ministerial
In News India raised concerns and proposed reforms at a mini-ministerial WTO meet in Paris (2025), attended by 25 member nations. Relevance of WTO in a Multipolar World Dispute Resolution: Crucial for managing trade tensions among rising powers (India, China, US, EU). Rule-Making: Essential to regulate new sectors (e-commerce, digital trade).
India and the European Union (EU)
Context India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed free trade agreement (FTA) and agreed to reach a deal in two phases. India-EU Free Trade Agreement (FTA) Negotiations Overview Negotiation Resumption: Talks resumed in June 2022 after an 8-year hiatus (stalled in 2013 due to market access disagreements). Objective: To finalize a comprehensive trade agreement covering goods, services, investments, and geographical indications.
Colombia Joins Belt and Road Initiative
In News Colombia formally agreed to join Chinas Belt and Road infrastructure initiative. Chinas Economic Influence US Concerns China is now the largest trading partner of several Latin American countries (Brazil, Chile, Peru). China is expanding its footprint through the Belt and Road Initiative (BRI), while the U.S.
US & China have Agreed to Temporarily Slash Tariffs
Context The U.S. and China agreed to suspend most tariffs on each other’s goods. Why were Tariffs Levied?
Free Trade Agreement (FTA) Signed Between UK-India
Context India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) after nearly three years of negotiations. What is a Free Trade Agreement or FTA? FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them.
India–UK Free Trade Agreement (FTA) Negotiations
Context The India–UK Free Trade Agreement (FTA) negotiations have hit fresh hurdles, primarily due to the UK’s proposed Carbon Border Adjustment Mechanism (CBAM) or carbon tax. Background The India–UK FTA negotiations were formally launched in 2022, as part of efforts to deepen economic cooperation and boost bilateral trade. As per data from FY 2023–24, the trade volume between the two countries reached $21.34 billion, an increase from $20.36 billion in the previous fiscal year.
USTR Releases 2025 “Special 301 Report” on Protecting Intellectual Property Rights
In News The Office of the United States Trade Representative (USTR) released its 2025 Special 301 Report assessing the adequacy and effectiveness of intellectual property (IP) rights protection and enforcement by U.S. trading partners. The “Special 301” Report It is an annual review of the global state of IP protection and enforcement.
China Restricts Exports of Rare Earths
In News Recently, China announced restrictions on the export of seven Rare Earth Elements which includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium following U.S. President Trump’s tariff impositions. Rare Earth Elements (REEs) They are a set of 17 chemical elements in the periodic table — cerium (Ce), dysprosium (Dy), erbium (Er) etc.
India Ends Transshipment for Bangladesh Exports
Context India has formally revoked the transshipment facility that allowed Bangladesh to export goods to third countries via Indian land customs stations, ports, and airports. Transshipment Agreement Introduced in 2020 by India’s Central Board of Indirect Taxes and Customs (CBIC), the agreement aimed to enhance regional connectivity and trade cooperation. Under this arrangement, cargo from Bangladesh could pass through Indian Land Customs Stations (LCSs) en route to ports and airports.
Weaponization of Trade and Finance
Context The Defence Minister of India highlighted the erosion of global order and multilateralism, driven by the weaponization of trade, finance, and emerging technologies. What is Weaponization of Trade and Finance? Weaponization of trade and finance refers to the strategic use of trade policies and economic measures by countries to exert political or economic pressure on others.
USA’s ‘Reciprocal Tariffs’ on India & World
In a significant move, US President Donald Trump announced ‘reciprocal tariffs’ on imports from various countries, including India, aimed to address trade imbalances but sparked global concerns about economic stability and diplomatic relations.
India-Australia Economic Cooperation and Trade Agreement
India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) marked its third anniversary.
Making America Great Again (MAGA) Effect Outside the US
Donald Trumps aggressive trade policies, particularly the imposition of higher tariffs, have had global economic repercussions.
US-China trade war 2.0
The ongoing trade war between the United States and China has caused significant global economic turbulence, influencing everything from tariffs on goods to the financial markets and international relations.
India and New Zealand resumed trade deal talks after decade
India and New Zealand announced the resumption of negotiations for a Free Trade Agreement (FTA) .
EAM Visit United Kingdom (UK)
The External Affairs Minister (EAM) paid an official visit to the United Kingdom.