Free Trade Agreement (FTA)

It is a regional economic forum established in 1989 composed of 21 member economies, the Philippines being a founding member, that aims to create greater prosperity for the people of the region by accelerating regional economic integration.

a) ASEAN

b) WCO

c) WTO

d) APEC

d) APEC

How does the WTO administer trade liberalization?

a) Through the establishment of regional trading arrangements such as AFTA and APEC

b) Through the binding of tariffs so members will be unable to increase tariffs up to a certain level

c) Through the proliferation of "Non-Tariff Barriers" on sensitive and regulated goods

d) Through the conduct of Multilateral Trade Negotiations known as "rounds"

d) Through the conduct of Multilateral Trade Negotiations known as "rounds"

With reference to the WTO Agreement on Agriculture, determine which of the following is a tariff applied to imported commodities which are within the MAV requirement.

a) In-Quota Tariff

b) Specific Tariff

c) Marginal Tariff

d) Out-Quota Tariff

a) In-Quota Tariff

It is defined as derogation from GATT/WTO obligations whereby a member state may impose restrictions or suspend tariff concessions on products imported in increase quantities causing injury to domestic industry.

a) Quantitative restriction

b) Trade without discrimination

c) Waiver

d) Balance of payment measure

a) Quantitative restriction

Which one among the following acts as the dispute settlement body and trade policy review mechanism concerned with the full range of trade issues within the scope of the WTO?

a) Senior Officials' Meeting

b) WTO Dispute Assessment and Settlement Committee

c) The General Council

d) The Ministerial Conference

d) The Ministerial Conference

Which one among the following choices is not a function of the WTO?

a) As an expert examining the technical aspects of customs systems

b) As an international court for dispute settlement among members

c) As a multilaterally-agreed rules governing international trade

d) As a forum for trade negotiations

a) As an expert examining the technical aspects of customs systems

Which one of the following is not among the fundamental principles of the WTO?

a) Recognizes free trade agreements

b) Encourages quantitative restrictions

c) MFN principle

d) Any increase in bound tariffs shall be compensated for

b) Encourages quantitative restrictions

A WTO commitment not to increase a rate of duty beyond an agreed level.

a) MFN status

b) Applied tariff

c) Tariff binding

d) Nominal tariff

c) Tariff binding

What WTO Agreement covers the products of HS Chapters 1 to 24 except fish and fish products, plus certain products in Chapters 29, 33, 35, 38, 41, 43, and 50 to 53, negotiated during the Uruguay Round and entered into force on 01 January 1995?

a) Non-Agricultural Market Access Agreement

b) Agreement on Agriculture

c) Agricultural Access Agreement

d) Agreement on the Trade Liberalization of Agricultural Products

b) Agreement on Agriculture

10. What was the obligation of the Philippines with respect to sensitive agricultural products under the Uruguay Round of Multilateral Trade Negotiations?

a) Reduce the rates of duty

b) Remove the quantitative restrictions and convert to equivalent tariffs

c) Increase the rates of duty

d) Exempt from trade remedy imposition

b) Remove the quantitative restrictions and convert to equivalent tariffs

It is defined as any measure other than the imposed import duty which serves to protect the domestic industry.

a) Tariff binding

b) Restrictive import procedures

c) Non-tariff barrier

d) Tariffication

c) Non-tariff barrier

Known as the "Final Act" signed on April 1994 that concluded the Uruguay series of negotiations and officially established the WTO.

a) Marrakesh Agreement

b) DOHA Development Agreement

c) Agreement on Tariff and Trade

d) Kyoto Convention

a) Marrakesh Agreement

With reference to the Philippines' commitment to the WTO Agreement on Agriculture, which among the following choices implements and administers importations covered by the MAV Scheme?

a) MAV Management Committee

b) MAV Technical Committee

c) MAV Special Group

d) Special Technical Group on Quantified Imports

a) MAV Management Committee

Which one among the following is the correct definition of "Tariffication"?

a) A process of converting import tariffs of WTO members into quantitative restriction type of tariffs, i.e., In-Quota and Out-Quota tariffs.

b) The systematic and gradual elimination/reduction of high tariffs on agricultural products.

c) The removal of non-tariff barriers on all industrial commodities and converting them into equivalent tariff values.

d) Procedures relating to the agricultural market-access provision in which all non-tariff measures are converted into tariffs

d) Procedures relating to the agricultural market-access provision in which all non-tariff measures are converted into tariffs

Which one among the following choices is the latest round of trade negotiations among WTO members aimed at the achievement of major reform in international trading system through the lowering of trade barriers and the revision of trade rules?

a) The Doha Round

b) The Beijing Round

c) The Manila Round

d) The Uruguay Round

a) The Doha Round

Which one of the following choices represents annual reports by APEC members, recording the actions that each member too to realize the APEC Bogor Goals of free and open trade and investment in the APEC region by 2010 for industrialized economies and 2020 for developing economies?

a) Integrated Action Program

b) Industrialization Access Parameter

c) Individual Action Plan

d) Integrated Accession Program

c) Individual Action Plan

Which one of the following choices is not among the three pillars or key areas of APEC?

a) Trade Policy Integration

b) Business Facilitation

c) Economic and Technical Cooperation

d) Trade and Investment Liberalization

a) Trade Policy Integration

The WTO's Agreement on Agriculture provides that, as a special treatment to developing countries like the Philippines, the predominant staple in the traditional diet of said countries shall be exempt from tariffication. Which one of the following staple food of the Philippines that was not tariffied?

a) Corn

b) Pork

c) Rice

d) Bananas

d) Bananas

Serves as a negotiating forum and trade dispute settlement body on trade problems between members.

a) WTO

b) WCO

c) ASEAN

d) APEC

a) WTO

The ITA was initiated by the "Quad Countries" the name used at the WTO to describe the four major industrialized-country markets. Which of the following country groupings represents the Quad Countries?

a) China, Japan, EU, US

b) EU, US, Australia, China

c) Canada, EU, Japan, US

d) Australia, Canada, US, Japan

c) Canada, EU, Japan, US

Which one of the following choices represents annual reports by APEC members, recording the actions that each member too to realize the APEC Bogor Goals of free and open trade and investment in the APEC region by 2010 for industrialized economies and 2020 for developing economies?

a) Integrated Action Program

b) Industrialization Access Parameter

c) Individual Action Plan

d) Integrated Accession Program

c) Individual Action Plan

Which one among the following statements is applicable under the AISP Scheme of ASEAN?

a) Thailand requested Viet Nam to reduce its tariffs on frozen fish to zero

b) Cambodia requested Viet Nam to reduce its tariffs on meat products to zero

c) Philippines requested Thailand to reduce its tariffs on sheath contraceptives to zero

d) Lao PDR requested Indonesia to reduce its tariffs on parts of electric fans to zero

d) Lao PDR requested Indonesia to reduce its tariffs on parts of electric fans to zero

Which one of the following countries is not among the founding fathers of the ASEAN?

a) Brunei

b) Philippines

c) Malaysia

d) Indonesia

b) Philippines

Under Article 31 of the ASEAN Charter, the chairmanship of ASEAN is to be determined by this process.

a) By majority votes among the leaders of the Member States.

b) Rotated annually, based on the alphabetical order of the English names of Member States.

c) Through delegation of the current Chairman.

d) To be appointed by the ASEAN Secretary-General.

b) Rotated annually, based on the alphabetical order of the English names of Member States.

Article 24 of the ATIGA mentions two (2) highly sensitive products. This Article adopted measures to provide special considerations for these products. What are these products?

a) Rice and Sugar

b) Rice and Corn

c) Coconut and Corn

d) Rice and Corn

a) Rice and Sugar

Prior to ATIGA, this is the primary instrument for realizing the objectives of the AFTA.

a) Trade Remedy Measures

b) CEPT Scheme

c) AICO Scheme

d) AISP Scheme

b) CEPT Scheme

Which one among the following is the peace treaty signed by the original members of ASEAN on 24 February 1976 at the 1st ASEAN Summit in Bali, Indonesia containing the fundamental principles of ASEAN?

a) ASEAN Peace Treaty

b) The Agreement on Peace and Cooperation among the Member States of ASEAN

c) Treaty of Amity and Cooperation in Southeast Asia

d) Treaty of Peace and Cooperation in ASEAN

c) Treaty of Amity and Cooperation in Southeast Asia

Which one among the following is the supreme policy-making body of ASEAN, where Heads of State or Government of each Member State meet to discuss and resolve regional issues?

a) ASEAN Leaders' Meeting

b) ASEAN Community Council

c) ASEAN Summit

d) ASEAN Coordinating Council

c) ASEAN Summit

Which one among the following choices was adopted in 2007 to serve as a coherent master plan guiding the establishment of the ASEAN Economic Community (AEC)?

a) AEC Master Plan

b) AEC Blueprint

c) AEC Projections

d) AEC Parameters

b) AEC Blueprint

The topmost decision-making body of the WTO and Meets at least once every two years

a. MINISTERIAL CONFERENCE

b. GENERAL COUNCIL

c. Councils for each broad area of trade

d. None of the above

a. MINISTERIAL CONFERENCE

They meets as the Dispute Settlement Body and the Trade Policy Review Body to oversee procedures: - - for settling disputes between members; & - - to analyze members’ trade policies

a. MINISTERIAL CONFERENCE

b. GENERAL COUNCIL

c. Councils for each broad area of trade

d. None of the above

b. GENERAL COUNCIL

Product Landscape of ITA

• computer hardware and peripherals

• telecommunications equipment

• computer software

• semiconductor manufacturing and testing equipment

• analytical instruments

• semiconductors and other electronic components

Established in 1989 in Canberra, Australia with 12 countries that later grew to 21 member economies.

a. APEC

b. RCEP

c. AFTA

d. ASEAN

a. APEC

APEC’s Three Pillars

1) Trade and Investment Liberalization;

2) Business Facilitation; and

3) Economic and Technical Cooperation.

3 Pillars of ASEAN Community

1. ASEAN Political-Security Community

2. ASEAN Economic Community

3. ASEAN Socio-Cultural Community