Free Trade Area (FTA)

A Free Trade Area (FTA) is an agreement between countries that aims to reduce or eliminate tariffs, quotas, and other barriers to trade among them. This allows member countries to buy and sell goods and services with fewer restrictions, promoting easier and often more affordable cross-border commerce. FTAs encourage economic growth, increase competition, and enhance cooperation among participating nations. However, each country maintains its own trade policies with non-member countries, and FTAs do not automatically address issues like labor standards or environmental protections. Examples include the North American Free Trade Agreement (NAFTA) and the European Free Trade Association (EFTA).