Which agreement refers to Rules of Origin and Preferential Tariff?

Which agreement refers to Rules of Origin and Preferential Tariff?

• A. Economic Partnership Agreement (E.P.A)
• B. General Agreement on Tariffs and Trade (GATT)
• C. Treaty of Paris
• D. North American Free Trade Agreement (NAFTA)

Answer: (A)

The idea being tested is how trade deals determine when goods can enjoy reduced or zero tariffs based on their origin. An Economic Partnership Agreement is built to offer tariff preferences to partner regions while also laying out clear rules of origin. Those rules specify what portion of a product must be produced in the partner country or region for it to qualify for the tariff benefits. That combination—eligibility for preferential tariffs tied to origin criteria—is the hallmark of EPAs, especially in how they structure trade with developed regions or blocs and ensure that benefits go to goods truly originating there.

GATT is a broad, multilateral framework focused on reducing general tariffs and promoting non-discrimination, not on a specific system of origin-based preferences. NAFTA does involve rules of origin and tariff preferences among three countries, but the way the question is framed aligns with how EPAs are described in terms of origin rules and preferential tariffs within their design.