In which form of regional trading agreements are rules of origin required?
A) a free-trade area
B) a customs union
C) a common market
D) an economic union

Question

Quizplus · Accepted Answer

Rules of origin are required in a free-trade area to determine which goods can benefit from the agreed-upon tariffs and which cannot. This is because in a free-trade area, each member country maintains its own external trade policy towards non-members, necessitating a mechanism to prevent goods from non-member countries entering duty-free under the guise of originating from a member country.

In Which Form of Regional Trading Agreements Are Rules of Origin