Q. With reference to the Preferential trade arrangements (PTA), consider the following statements:
1.Under this a country may offer lower or zero tariff to other countries unilaterally.
2. Generalised system of Preferences is an example of PTA
Which of the statements given above is/are correct?
Answer: C
Notes:
Preferential trade arrangement is the term used in the WTO for trade preferences, such as lower or zero tariffs, which a member may offer to a trade partner unilaterally. These include generalised system of preferences schemes, under which developed countries grant preferential tariffs to imports from developing countries.
Source- Article
