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Preferential Trade Area (PTA) – The First Step! 👣

Definition: A trading bloc that gives preferential access to certain products from the participating countries.

  • Action: Reduce tariffs (not abolish).
  • Example: "I will charge you 10% tax instead of 20%."

Key Feature: It is the weakest form of integration.

Real World Example:

  • SAPTA (SAARC Preferential Trading Arrangement). India, Pakistan, Sri Lanka, etc. agreed to lower taxes on some items.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. PTA stands for:

Permanent Trade Area
Preferential Trade Area
Partial Tax Agreement
None

💡 Final Wisdom: "A PTA is like dating. You are just getting to know each other. It's not marriage yet!" 💍❌

Next up: Free Trade Area (FTA) - Zero Tax! 0️⃣

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