Free Trade Agreements
A free-trade area is a trade bloc whose member countries have signed a free-trade agreement (FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. If people are also free to move between the countries, in addition to FTA, it would also be considered an open border. It can be considered the second stage of economic integration. Countries choose this kind of economic integration if their economical structures are complementary. If their economical structures are competitive, it is likely there will be no incentive for a FTA, or only selected areas of goods and services will be covered to fulfill the economic interests between the two signatories of FTA.
Read more about Free Trade Agreements: Description, Lists of Free-trade Areas, Qualifying For A Free-trade Agreement
Famous quotes containing the words free, trade and/or agreements:
“The real American type can never be a ballet dancer. The legs are too long, the body too supple and the spirit too free for this school of affected grace and toe walking.”
—Isadora Duncan (1878–1927)
“Killers, huh? I’d trade the pair of you for a good Camp Fire Girl.”
—Daniel Taradash (b. 1913)
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—John Locke (1632–1704)