International Current Affairs MCQs - 2026-07-12

Modern comprehensive trade agreements go beyond mere tariff reductions. They often include chapters on Intellectual Property Rights (IPR) to protect innovations, investment protection to encourage cross-border investments, and robust dispute settlement mechanisms to resolve trade-related disagreements fairly and efficiently.

India has a globally recognized strength in Information Technology and IT-enabled services. The EU, being a major market, would benefit from increased access to these services, while Indian companies would gain greater market access and opportunities, making this sector a significant beneficiary of such a trade agreement.

Bilateral trade agreements, such as the one between India and the EU, are primarily designed to foster economic cooperation by reducing trade barriers like tariffs, quotas, and other non-tariff measures. This aims to increase market access, boost trade volumes, and facilitate investment flows between the signatory parties.

The veto power held by the five permanent members (P5) is a major point of contention. Many countries argue that extending this power to new permanent members or reforming its use is crucial for a more democratic and effective Security Council, while others, including some P5 members, are reluctant to dilute their influence.

The G4 nations – India, Germany, Japan, and Brazil – are four countries that support each other's bids for permanent seats on the UN Security Council. They are among the largest economies in their respective regions and contribute significantly to the UN, arguing for a more representative and effective Security Council.

The UN Security Council's structure, with its five permanent members and ten non-permanent members, largely reflects the power dynamics at the end of World War II. Critics argue that this structure is outdated and does not adequately represent the geopolitical realities of the 21st century, leading to calls for reform to include more diverse representation.