economics medium Fill in the Blank

In international trade agreements, ___ of Origin are the criteria used to determine the national source of a product, which is crucial for deciding whether the product qualifies for preferential tariff treatment under a Free Trade Agreement.

  1. 1965
  2. Kuznets
  3. health and education
  4. Rules

Answer: Rules

Rules of Origin prevent 'trade deflection,' where a non-member country routes its exports through a low-tariff FTA member country to bypass higher tariffs. These rules typically mandate that a product must undergo a substantial transformation or meet a minimum value-addition threshold (e.g., 35% local content) within the FTA zone to claim duty-free benefits.

Topic International Economics - Trade
Exam Relevance UPSC Prelims, SSC CGL
More economics Questions Back to all questions