Test: SAARC & NAFTA - UGC NET MCQ

The primary aim of the European Union's trade agreements is to facilitate the exchange of goods, services, and investments. These agreements are designed to reduce or eliminate trade barriers, such as tariffs and quotas, to promote smoother trade relationships between the EU and its partner countries. By fostering trade, these agreements contribute to economic growth, job creation, and increased market access for businesses across Europe.

The primary goal of EU Free Trade Agreements is to eliminate nearly all tariffs and barriers to trade with partner countries. By doing so, these agreements aim to facilitate smoother trade relations and increase economic cooperation between the involved nations.

One of the key benefits of EU trade agreements is the reduction or elimination of tariffs on goods traded between the EU and its partners. This helps to make EU exports more competitive and reduces the cost of imports, ultimately benefiting both producers and consumers. Tariff reductions encourage trade flow, enhance economic growth, and foster greater consumer choice by lowering barriers to international trade.

EU Trade Cooperation Agreements primarily aim at strengthening legal and policy frameworks to enhance trade and investment relationships. This involves aspects like intellectual property rights, competition policies, public procurement, and sustainable development. By improving these frameworks, the agreements provide legal certainty, transparency, and a fair environment for trade and investment, benefiting both the European Union and its trade partners.

• The assertion stating that ASEAN emphasizes social progress through programs in education, public health, and rural development is correct.
• The reason that ASEAN's primary objective is to accelerate economic growth among member nations is also true.
• However, the reason does not directly explain why ASEAN emphasizes social progress through various programs. Economic growth and social progress, while related, are distinct objectives within ASEAN's framework.

Assertion: The assertion that Brunei Darussalam is known for its rich oil and natural gas reserves is about the country.

Reason: However, the reason stating that Brunei Darussalam is the largest country in Southeast Asia is false. The largest country in Southeast Asia is Indonesia, not Brunei Darussalam.

Explanation: While the assertion is true, the reason is false, making Option C the correct answer. Brunei Darussalam is indeed known for its oil and natural gas reserves, but it is not the largest country in Southeast Asia.

Assertion Correctness: The assertion is true as ASEAN indeed aims to enhance economic growth among its members through various means.

Reason Correctness: The reason is also true as economic growth plays a vital role in driving social progress and cultural development.

Explanation: While both statements are true, economic growth alone might not be the sole reason for promoting social progress and cultural development. Other factors, such as social policies and cultural initiatives, also contribute significantly to these aspects. Hence, the reason is not the correct explanation of the assertion.

Assertion Analysis:

• The assertion that ASEAN plays a crucial role in promoting economic growth among its member countries is correct. ASEAN indeed serves as a platform for collaboration on trade, investment, and economic issues among its member nations.

Reason Analysis:

• The reason stating that cooperation within ASEAN facilitates the establishment of a unified financial market in Southeast Asia is also accurate. Through cooperation and initiatives, ASEAN aims to create a single market and production base in the region.

Explanation:

• The reason provided sufficiently explains the assertion. The economic growth promoted by ASEAN is facilitated by the cooperation and efforts towards establishing a unified financial market in Southeast Asia. Thus, Option A is the correct choice as both the assertion and reason are true, and the reason is the correct explanation of the assertion.

SAARC: The South Asian Association for Regional Cooperation.

• It is the regional intergovernmental organization and geopolitical union of states in South Asia.
• Its member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
• It was established in 1985 in Dhaka, Bangladesh.
• The fourteenth summit of SAARC was held in New Delhi, India on 3rd-4 April 2007.
• It was attended by the presidents of Afghanistan, the Maldives, and Sri Lanka and the prime ministers of Bhutan, INDIA, Nepal, and Pakistan, and the chief adviser of the government of Bangladesh.
• The summit stressed improving intra-regional connectivity.

Hence the Host country of the SAARC Summits 2007 is India.

Key Points

• SAARC stands for South Asian Association for Regional Cooperation.
• The South Asian Association for Regional Cooperation is the regional intergovernmental organization and geopolitical union of states in South Asia.
• Its member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. 

Important Points

• SAARC stands for South Asian Association for Regional Cooperation.
• It was founded on 8 December 1985.
• The current President of SAARC is Esala Ruwan Weerakoon of Sri Lanka.
• The headquarters of SAARC is in Kathmandu, Nepal.
• India hosted a virtual health secretary-level meeting with other South Asian Association for Regional Cooperation countries on February 18, 2021.