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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.[1] 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".[2] FTAs can be a first step towards economic integration.

ExamplesEdit

  • 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

See alsoEdit

ReferencesEdit

  1. ^ "3 Types of Free Trade Agreements and How They Work". The Balance. Retrieved 2019-03-24.
  2. ^ http://trade.ec.europa.eu/tradehelp/free-trade-agreements