Preferential Trade Arrangement

A Preferential Trade Arrangement (PTA) is an agreement between countries to reduce tariffs or other trade barriers on certain goods, making them cheaper to trade. Unlike full free trade agreements, PTAs do not eliminate all barriers but provide preferential treatment to specific products. This means countries involved in a PTA can export and import selected goods at lower costs compared to those outside the arrangement. PTAs aim to promote trade relationships, enhance economic cooperation, and support developing countries by giving them better access to larger markets without committing to complete free trade.