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      Question

      Which mechanism in the India–New Zealand Free Trade

      Agreement allows India to suspend benefits if investment commitments are not fulfilled?
      A Safeguard mechanism Correct Answer Incorrect Answer
      B Anti-dumping mechanism Correct Answer Incorrect Answer
      C Dispute settlement mechanism Correct Answer Incorrect Answer
      D Rebalancing mechanism Correct Answer Incorrect Answer
      E Sunset clause Correct Answer Incorrect Answer

      Solution

      The India–New Zealand FTA  states that the agreement includes a rebalancing mechanism, under which India can suspend FTA benefits if the promised FDI does not materialise.

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