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Indian Economy

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Indian Economy - Understanding the basics of Indian economic system

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With reference to Preferential Trade Agreements (PTA), consider the following statements

In a PTA, the partners can reduce the tariffs on entry of certain products to a certain limit but not to completely zero.
India has signed a PTA with Afghanistan.

Select the correct statement.

1 only

2 only

Both

None

Explanation:

Preferential Trade Agreement (PTA)

PTAs or Generalized System of Preferences (GSP) is a special status given in trade by various countries. In this type of agreement, two or more partners give preferential right of entry to certain products by reducing duties on an agreed number of tariff lines.
Tariffs may even be reduced to zero for some products even in a PTA. India signed a PTA with Afghanistan.

Hence only statement 2nd is correct.

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