Free Trade Area

A Free Trade Area is an agreement between countries that reduces or eliminates tariffs, quotas, and other trade barriers on goods and services exchanged among member nations. This arrangement allows member countries to trade more freely, promoting economic growth and cooperation. However, each country still maintains its own trade policies with countries outside the agreement. Examples include the European Free Trade Association (EFTA) and the North American Free Trade Agreement (NAFTA). Overall, it aims to make cross-border trade easier and more cost-effective, benefiting consumers and businesses within the member countries.