Which of the following statements is correct regarding Free Trade Agreement FTA ........

Economic Affairs Foreign Trade - Trends and Policy

Which of the following statements is correct regarding Free Trade Agreement (FTA)?

An agreement which is only partial in scope, meaning it allows for trade between countries on a small number of goods.

A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-members.

A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non-members.

The market where movement of factors of production is relatively free amongst member countries.

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Explanation:

2nd option is correct i.e. A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-members.