4 Categories Of Preferential Trade Agreements

The preferential agreement requires the least commitment to the removal of barriers to trade Trade barriers are legal measures that are put in place primarily to protect a country`s national economy. They usually reduce the amount of goods and services that can be imported. Such barriers to trade take the form of customs duties or taxes, although Member States do not remove barriers between them. In addition, preferential trade zones have no common barriers to foreign trade. As has already been said, these are agreements in which one country unilaterally offers preferential rights to another country or group of countries. The country offering the preference shall lift or reduce import duties on imports from those countries, without in return benefiting from the same preferences.