What is the term for a WTO-compliant free trade agreement between two or more countries, commonly abbreviated as CEPA?

• A. Free Trade Agreement
• B. Regional Trading Bloc
• C. Closer Economic Partnership Arrangement (CEPA)
• D. Customs Union

Answer: (C)

CEPA stands for Closer Economic Partnership Arrangement, describing a WTO-compliant agreement between two or more countries that implies deeper economic integration than a basic free trade deal. It signals not just tariff removal but broader cooperation on services, investment, and rules, while still operating within WTO rules. This distinguishes it from a general Free Trade Agreement, a Regional Trading Bloc, or a Customs Union (which involves a common external tariff).