Preferential agreements

Question

Quizplus · Accepted Answer

Preferential agreements provide market access without demanding reciprocation, meaning that certain countries are given preferential treatment in terms of access to another country's market without necessarily having to give reciprocal treatment in return. This is different from free trade agreements where both parties agree to reduce or eliminate trade barriers for each other. Preferential agreements are recognized under WTO rules, but there are rules and regulations around their usage. They do not need approval from the IMF.

Preferential Agreements