India–EU Free Trade Agreement (FTA) [Prelims Bits]

13 Sep 2026

Tags: Prelims   Current events of national and international importance

Source: The Hindu

  • Context: The European Commission has forwarded the India–EU Free Trade Agreement (FTA) text to the European Council for approval to sign and conclude the agreement.
  • Legal vetting and finalisation of the text are complete; internal EU approvals remain.
  • European Commission: Proposes the signing and conclusion of the FTA.
  • European Council: Must authorise its signature and conclusion.
  • European Parliament: Its consent is required before the agreement can be concluded and enter into force.
  • European Commission: Executive arm of the EU; represents the EU in areas such as trade negotiations.
  • European Council: Comprises the heads of state or government of EU member states; sets the EU’s broad political direction.
  • European Parliament: Directly elected EU institution; exercises legislative, budgetary and scrutiny functions and gives consent to certain international agreements.
  • FTA: Agreement between countries/economies to reduce or eliminate tariffs and other barriers to trade between them.

Prelims Question

Q1. With reference to the institutional framework of the European Union (EU), consider the following statements:

  1. The European Commission can represent the EU in trade negotiations with non-EU countries.
  2. The European Council consists of the heads of state or government of the EU Member States.
  3. The European Parliament is directly elected and exercises legislative, budgetary and scrutiny functions.
  4. The European Council acts as the EU's primary legislative body for concluding international trade agreements.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (b) 1, 2 and 3 only

Explanation:
Statements 1, 2 and 3 are correct. The European Commission handles the EU's executive functions and negotiates trade agreements, while the European Council provides overall political direction. The European Parliament is directly elected and performs legislative, budgetary and scrutiny functions. Statement 4 is incorrect: the European Council is not the EU's primary legislative body; legislative functions are mainly exercised by the European Parliament and the Council of the European Union.