CATSA could not penetrate the Ancom market for several reasons:
Although Ancom __________ a 55-percent common outer tariff on third-country imports, some Ancom countries had previously __________ LAFTA tariff concessions, which take precedence over the Ancom tariffs.
Ancom members simply did not __________ the spirit of the metalworking agreement. After the installation of the CATSA facility, plants producing tricone bits __________ in Peru and Venezuela. Under the metalworking program, participating __________ were committed to prohibiting new foreign investment in allocations of other Ancom countries. But on the question of new investment by local industry, the obligation was only not to encourage it, with no requirement to prevent it. __________ Venezuela, it has no commitment to limit local production or to honor the outer tariff, because it was not yet a member of Ancom when the metalworking agreement was signed and was thus not a __________ to the pact.
Also, according to Bolivia, Colombia and Ecuador employed __________ obstacles to avoid applying the common outer tariff.
The withdrawal of Chile from Ancom cost Bolivia a lucrative potential market too.
1. A) in
B) to
C) under
D) on
2. A) fail B) to fail C) failing D) succeeding
3. A) no duty B) no-duty C) duty-bound D) duty-free
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