Q6 · UPSC current affairs · 15 September 2026 · News · India MERCOSUR Preferential Trade Agreement Rules of Origin Protocol

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What is the primary purpose of establishing 'Rules of Origin' in international trade agreements like PTAs?

A To determine the exact shipping route and logistics provider used for cargo transit
B To define where a product was made to determine eligibility for preferential tariff treatment
C To enforce intellectual property rights on patented pharmaceutical goods across borders
D To mandate labor standards and minimum wage laws for exporting factories

Correct answer: (b) To define where a product was made to determine eligibility for preferential tariff treatment

Explanation

Option B correctly defines Rules of Origin as criteria used to establish where a product was manufactured in order to determine its eligibility for preferential tariff treatment under a trade pact. Options A, C, and D are unrelated to origin criteria.

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