Question

Which statement shows that the agreement between the fictional nations of Ziberia and Deerkey is a free trade agreement? Until the twentieth century, the nations of Ziberia and Deerkey practiced protectionism for many of their key industries. Both nations changed their status from developing to developed economies in the twenty-first century. Both nations were producing massive amount of goods, which necessitated expanded export markets. Therefore, the heads of state met in Ziberia’s capital city and began negotiating a trade agreement. Both nations promised to adhere to international labor standards. The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries. Another clause in the agreement required the nations to ensure ethical treatment of livestock according to international animal welfare standards.

Answer 1

The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries.

Answer 2

The statements that show that the agreement between  the fictional nations of Ziberia and Deerkey is a free trade agreement are:

1- "Both nations promised to adhere to international labor standards."

One important part of free trade agreements that it must adhere to the minimum commitments for the protection of human rights at work and refer to specific international labour standards adopted by the ILO.

2- "The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years".

Anotherof the characteristics of free trade agreements is the commerce in goods and services across common borders without tariffs or hindrances .