Question

Consider the following with regard to Trade Facilitation Agreement:

Codes:

• A. Only 1
  
• B. Only 1 and 3
  
  
• C. Only 2 and 3
  
• D. All of the above
  

Answer 1

The correct option is C Only 2 and 3


(c)
Explanation: India has formally ratified the WTO’s (World Trade Organisation) Trade Facilitation Agreement, which aims at easing customs procedures to boost commerce. The TFA is the WTO’s first-ever multilateral accord that aims to simplify customs regulations for the cross-border movement of goods. It was outcome of WTO’s 9th Bali (Indonesia) ministerial package of 2013. The agreement includes provisions for:
1) Lowering import tariffs and agricultural subsidies: It will make it easier for developing countries to trade with the developed world in global markets.
2) Abolish hard import quotas: Developed countries would abolish hard import quotas on agricultural products from the developing world and instead would only be allowed to charge tariffs on amount of agricultural imports exceeding specific limits.
3) Reduction in red tape at international borders: It aims to reduce red-tapism to facilitate trade by reforming customs bureaucracies and formalities.