Question

Are preferential trading agreements necessarily good for national welfare? How? Rather than gaining tariff revenue from inexpensive imports from world markets, a country may import expensive products from member countries but not gain any tariff revenue? Explain it in Afghanistan context.

Answer 1

The prefferential agreement

it is an agreement which gives prefer its a association or we can say an alliance which can give very much preffered access to the particular or one good or product by the country which is participating , it is just established by the trade agreement , we can say that the integration of the economy starts from here and every PTA having a vision to become a FTA in ones' country within the accordance of the general agreement or we can say this in an easier way that the PTA ia that in which one country fix lower tariffs with mutual discussion from rest of the world.

sometimes this PTA can perform a very important role but sometimes it hampers the capability of importing from some other countries and can start or develop good global relations some times

it makes hamper with respect of having less revenue as tariff.

rather gaining tariff revenue from the world the country import from the member

if we talking about the afghanistan in order to increase the bilateral trade and humayun the commerce minister have passed with duly signed agreement and proposed PTA which is leading to FTA with afghanistan