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UPSC 2006: Consider the following statements: 1. The agreement on South Asian Free Trade Area (SAFTA) came into effect from 1st December 2005. 2. As per SAFTA agreement terms, India, Pakistan and Sri Lanka have to decrease their custom duties to the level of 0 % to 5 % by the year 2013. Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (b) 2 only
The SAFTA agreement entered into force on 1 January 2006, not 1 December 2005, so statement 1 is incorrect ([bangladeshcustoms.gov.bd](https://bangladeshcustoms.gov.bd/trade_info/pte_safta?utm_source=openai)). Under the agreement’s tariff-liberalisation schedule, India, Pakistan and Sri Lanka (the non-LDC members) must reduce customs duties to 0–5 % by 2013, making statement 2 correct ([timesofindia.indiatimes.com](https://timesofindia.indiatimes.com/india/safta-becomes-operational-tommorow/articleshow/1353832.cms?utm_source=openai)). Hence only statement 2 is correct.
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Frequently Asked Questions
What is the correct answer to this UPSC 2006 Indian Economy question?▼
The correct answer is option (b): 2 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this International Trade & WTO question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2006, GS Paper 1, as Question 46. It falls under Indian Economy > International Trade & WTO.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from International Trade & WTO?▼
UPSC has asked 38 questions from International Trade & WTO (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.