Prelims : Current events of national and international importance
Why in News?
India and Paraguay can partner in expanding regional commerce in Latin America with MERCOSUR, said Prime Minister Narendra Modi recently.
Free Trade Agreement (FTA) |
Preferential Trade Agreement (PTA) |
It is a trade pact between two or more countries to reduce or eliminate tariffs and other trade barriers like quotas and subsidies on goods and services, aiming to facilitate trade. |
It grants preferential access to certain products from other member countries, but it doesn't necessarily eliminate all tariffs. |
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