Preferential Trade Agreement

A Preferential Trade Agreement (PTA) is a formal arrangement between countries that reduces tariffs and other trade barriers on selected goods and services to encourage closer economic ties. Unlike full free trade agreements, PTAs typically grant preferential treatment to specific partners, making it cheaper and easier to trade certain products. This aims to boost economic growth, increase exports, and foster cooperation. PTAs can vary in scope and depth, and while they benefit participating countries, they may also impact global trade fairness by giving these nations an advantage in specific markets.