Which of the following Is Not a Preferential Trading Agreement Mcq

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NAFTA has not eliminated regulatory requirements for companies wishing to trade internationally, such as . B rules of origin and documentation requirements that determine whether certain goods may be traded under NAFTA. The free trade agreement also includes administrative, civil and criminal penalties for companies that violate the laws or customs procedures of the three countries. Note: India has used free trade agreements as a key element of its trade and foreign policy, especially since 2003-04. India has mainly focused on partnerships with other Asian countries, more on goods than services. In Asia, India signed bilateral free trade agreements with Sri Lanka in 1998), Afghanistan (2003), Thailand (2004), Singapore (2005), Bhutan (2006), Nepal (2009), Korea (2009), Malaysia (2011) and Japan (2011). Q.6 Consider the following statements A country may change its ties, but only after negotiations with its trading partners, which could mean that they will be compensated for the loss of trade. One of the achievements of the Uruguay Round of multilateral trade negotiations was to increase the volume of trade under binding commitments (see table). In agriculture, 100% of products now have bound tariffs. The result of all this: a significantly higher degree of market security for traders and investors. Note: India has also signed two regional trade agreements, the South Asia Free Trade Agreement (SAFTA, 2004) and the Association of Southeast Asian Nations India Agreement (ASEAN, 2010). Outside Asia, free trade agreements have been concluded with Chile (2006) and MERCOSUR (2004). All WTO members, with the exception of Mongolia, have completed at least one PTA, while some, such as the European Union, Chile and Mexico, have completed more than 20.

Q.7 Consider that the following statements on mega-regional agreements NAFTA has been supplemented by two other provisions: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labour Cooperation (NAALC). These tangential agreements were aimed at preventing companies from being relocated to other countries to take advantage of lower wages, softer health and safety regulations for workers, and more flexible environmental regulations. The UPSC Civil Services (IAS) Prelims exam will take place on August 7, 2016 and it`s high time to start practicing the PRElims Like Subject Questions IAS, which can make them more comfortable for multiple choice questions. From the beginning, NAFTA`s critics feared that the agreement would lead to the relocation of American jobs to Mexico despite the complementarity of the NAALC. NAFTA, for example, has affected thousands of American autoworkers in this way. Many companies have moved production to Mexico and other countries with lower labor costs. However, NAFTA may not have been the reason for these measures. President Donald Trump`s USMCA should address these concerns.

The White House estimates that the USMCA will create 600,000 jobs and add $235 billion to the economy. 1. The Customs Union (CU) is an independent form of PTA, although it is a trade integration agreement. At the end of the Uruguay Round, developing countries were ready to assume most of the commitments required of developed countries. But the agreements have given them transition periods to adapt to WTO rules that are more unfamiliar and perhaps difficult, especially for the poorest and least developed countries. A ministerial decision adopted at the end of the round stipulates that the wealthiest countries should accelerate the implementation of market access obligations for goods exported by least developed countries and seek increased technical assistance from them. More recently, developed countries have begun to allow duty-free and quota-free imports for almost all products from least developed countries. In all of this, the WTO and its members are still undergoing a learning process. The current Doha Development Agenda also reflects the concern of developing countries about the difficulties they face in implementing the Uruguay Round agreements. II. The SAFTA agreement allows all states to withdraw from the treaty at any time.

1. Most-favoured-nation treatment: treating others equally Under WTO agreements, countries cannot normally discriminate between their trading partners. Give someone a special favor (for example. B a lower rate of duty on one of its products), and you must do the same for all other WTO Members. Open markets can be beneficial, but it also requires adjustment. WTO agreements allow countries to make gradual changes through progressive liberalization. Developing countries generally have a longer period of time to meet their obligations. The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the United States, Canada and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, entered into force on 1 January 1994.

Many tariffs, notably on agriculture, textiles and automobiles, were phased out between 1 January 1994 and 1 January 2008. Explanation: A customs union (CU) is a free trade agreement in which members apply a Common External Customs Tariff (CET) to imports from non-members. The five forms of PTAs are A. Partial Scope Agreements (SPAs) B. Free Trade Agreements (FTAs) C. Customs Union (CU) D. Common Market (CM) E. Economic Union (EU). Q.4 Which of the following characteristics are/are characteristics of economic union? President Donald Trump promised during the election campaign to repeal NAFTA and other trade agreements that he considered unfair to the United States. On August 27, 2018, he announced a new trade agreement with Mexico to replace him. The U.S.-Mexico trade agreement, as it was called, would maintain duty-free access for agricultural products on both sides of the border and remove non-tariff barriers to trade, while further promoting agricultural trade between Mexico and the United States and effectively replacing NAFTA. The WTO system contributes to development.

On the other hand, developing countries need the flexibility in time they need to implement the agreements on the system. And the agreements themselves inherit the old GATT provisions, which allow for special aid and trade concessions for developing countries. On January 29, 2020, President Donald Trump signed the agreement between the United States, Mexico and Canada. Canada has not yet adopted it in its parliamentary body until January 2020. Mexico was the first country to ratify the agreement in 2019. 1. Consider the following statements regarding the G-20 legislation that was developed under President George H. W. Bush as the first phase of his Enterprise for the Americas initiative. The Clinton administration, which signed NAFTA in 1993, believed it would create 200,000 jobs in the United States within two years and 1 million within five years, as exports play an important role in U.S.

economic growth. The government expected a dramatic increase in U.S. imports from Mexico due to lower tariffs. 8. Which of the following points is not correctly awarded? The United States currently has a number of free trade agreements in place. These include multinational agreements such as the North American Free Trade Agreement (NAFTA), which covers the United States, Canada and Mexico, and the Central American Free Trade Agreement (CAFTA), which covers most Central American countries. There are also separate trade agreements with countries ranging from Australia to Peru. The system also attempts to improve predictability and stability in other ways. One way is to prevent the use of quotas and other measures to limit import volumes, as quota management can lead to more bureaucracy and accusations of unfairness. Another is to make countries` trade rules as clear and public (transparent) as possible. Many WTO agreements require governments to publicly disclose their policies and practices in the country or by notifying the WTO.

Regular monitoring of national trade policy through the Trade Policy Review Mechanism is another way to promote transparency at the national and multilateral levels. Wto Agreements are long and complex because they are legal texts that cover a wide range of activities. They cover agriculture, textiles and clothing, banking, telecommunications, government procurement, industry standards and product safety, food hygiene regulations, intellectual property and much more. But a set of simple and basic principles run through all these documents. These principles are the basis of the multilateral trading system. 2. National treatment: Treat foreigners and nationals equally Goods imported and produced in the country should be treated equally at least after the entry of foreign goods into the market. The same should apply to foreign and domestic services, as well as to foreign and local trademarks, copyrights and patents.

This principle of national treatment (which accords others the same treatment as their own nationals) is also found in the three main WTO agreements (Article 3 of the GATT, Article 17 of the GATS and Article 3 of the TRIPS Agreement), although the principle is applied somewhat differently in each of these agreements. Most-favoured-nation status did not always mean equal treatment. The first bilateral treaties on the most favored nations created exclusive clubs among a country`s most favored trading partners. Under gatt and now the WTO, the MFN club is no longer exclusive. The most-favoured-nation principle ensures that each country treats its more than 140 members equally. 2. Free trade agreements have led to an increase in imports relative to exports. Choose the right answer from the following codes: “The USMCA will provide our workers, farmers, ranchers and businesses with a high-level trade agreement that will lead to freer markets, fairer trade and robust economic growth in our region. It will empower the middle class and create good, well-paying jobs and new opportunities for nearly half a billion people living in North America. Explanation: A free trade agreement is a preferential arrangement in which Members reduce tariffs on trade between themselves while maintaining their own tariffs on trade with non-Members. F.3 Note the following statements 1.

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