Free trade agreement
A free trade agreement (FTA) or treaty is a multinational agreement according to international law to form a free-trade area between the cooperating states. FTAs, a form of trade pacts, determine the tariffs and duties that countries impose on imports and exports with the goal of reducing or eliminating trade barriers, thus affecting international trade. Such agreements usually "center on a chapter providing for preferential tariff treatment", but they also often "include clauses on trade facilitation and rule-making in areas such as investment, intellectual property, government procurement, technical standards and sanitary and phytosanitary issues". FTAs can be a first step towards economic integration.
- ASEAN FTA between members of the Association of Southeast Asian Nations, 1992
- CEFTA trade agreement between non-EU countries, members of which are now mostly located in Southeastern Europe, 1992
- CUSFTA FTA between Canada and the United States, 1987
- Mercosur, South American FTA between Argentina, Brazil, Paraguay Uruguay, and Venezuela as full members, 1991 and 1994
- NAFTA FTA between Canada, Mexico, and the United States, 1994