Q. Consider the following Statements:
1.A free-trade agreement (FTA) is one which eliminates tariffs, import quotas, and preferences on most goods and services traded between the two countries.
2.It is the first stage of economic integration of countries.
Which of the statements given above is/are correct?
Answer: A
Notes:
A Preferential trade agreement and not FTA is the first stage of economic integration.
A free-trade area is a trade bloc whose member countries have signed a free-trade agreement (FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them.
Source- Article
