Free Trade Area
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 Area: Description, Lists of Free-trade Areas, Qualifying For A Free-trade Agreement
Famous quotes containing the words free, trade and/or area:
“After all, I do not have so many ways of proving that I am free. We is always free at the expense of someone else. It is a bother, but it is normal.”
—Albert Camus (1913–1960)
“Literature flourishes best when it is half a trade and half an art.”
—W.R. (William Ralph)
“If you meet a sectary, or a hostile partisan, never recognize the dividing lines; but meet on what common ground remains,—if only that the sun shines, and the rain rains for both; the area will widen very fast, and ere you know it the boundary mountains, on which the eye had fastened, have melted into air.”
—Ralph Waldo Emerson (1803–1882)