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:
“We must be free or die, who speak the tongue
That Shakespeare spake; the faith and morals hold
Which Milton held.”
—William Wordsworth (1770–1850)
“A nose, kind sir! Sure, Mother Nature,
With all her freaks, ne’er formed this feature.
If such were mine, I’d try and trade it,
And swear the gods had never made it.”
—Susanna Moodie (1803–1885)
“During the Civil War the area became a refuge for service- dodging Texans, and gangs of bushwhackers, as they were called, hid in its fastnesses. Conscript details of the Confederate Army hunted the fugitives and occasional skirmishes resulted.”
—Administration in the State of Texa, U.S. public relief program (1935-1943)