Direction: Read the following passage carefully and answer the following questions.

United States President Donald Trump’s announcement that Washington will withdraw the GSP (Generalized System of Preferences) trade status given to India 30 years ago came hours after former diplomat S. Jaishankar assumed office as External Affairs Minister, pointing to the fact that the immediate challenges before him will come from the U.S., and its “great power rivalry” with Russia and China.

Even without the GSP decision, the India-U.S. trade relationship had been under heavy strain for the past year, over what the Washington calls unfair trade restrictions on sale of dairy products and medical equipment, as well as proposed Indian regulations on data localisation and e-commerce companies operating here. Despite several rounds of talks on a comprehensive trade package, there has been no breakthrough, and Mr. Jaishankar will have to work with the new Commerce Minister Piyush Goyal to revive the talks, possibly when Secretary of State Mike Pompeo visits Delhi this month.

On Thursday, the U.S. Special Representative for Iran, Brian Hook, said plainly that the U.S. would sanction, without exception, any country that buys or has bought Iranian oil after the May 2 deadline.

While India has not bought Iranian oil since May 2, it is yet to say categorically that it won’t, and the new External Affairs Minister is expected to make a clear policy statement on this soon. Russia and China have opposed the sanctions, and are likely to discuss this at the upcoming SCO (Shanghai Cooperation Organization) summit with Prime Minister Narendra Modi.

On Friday, a senior State Department official told a group of reporters in Washington, that the U.S. would  also bring sanctions under the Countering America’s Adversaries through Sanctions Act, CAATSA, against India, if it goes ahead with its purchase of the S-400 Triumf missile shield from Russia. The purchase would “preclude” a deep and broad defence relationship with the U.S., the official said. India has announced that it will India get its first Triumf system by October 2020 and the $5.5 billion contract will be completed by April 2023, and unless the government changes plans, it is set on a collision course with the U.S. on the issue.

On Saturday, Acting Secretary of Defense Patrick Shanahan made it clear that the U.S. wants its partners to join in the ban on Chinese telecommunication company Huawei for its 5G technology. “Huawei is too close to the [Chinese] government,” said Mr. Shanahan, speaking at the annual “Shangri-La Dialogue” in Singapore, warning of cybersecurity and intellectual property issues with the company.

Mr. Shanahan’s warnings followed a stark message from Mr. Pompeo, who said during a visit to Germany  on Friday that the U.S. may cut intelligence sharing with countries that choose telecom companies the U.S. doesn’t trust. India has thus far declined to ban Huawei from its process for 5G telecommunication network.

Q:

Which among the following issues has prompted USA to declare that it might invoke the CAATSA Act against India?

• 1
  India has not decided to give free access to the USA goods to India despite the fact that USA is its ally country.
• 2
  India imports goods from countries other than the USA for the benefit of price given to it by such countries.
• 3
  India has decided to import military hardware from Russia and the same is supposed to be delivered by 2023
• 4
  India has decided to import oil from countries on which USA has already imposed sanctions for trade relations.
• 5
  None of the above