Glossary

Free Trade Area (FTA)

A Free Trade Area (FTA) is a region where different countries agree to eliminate or lower the trade barriers for each others.

For instance, there is a free trade agreement between Mexico, Canada, and the United States, named North American Free Trade Agreement (NAFTA).

Benefits of Free Trade Area (FTA):

  • Reduced prices

  • Increased access to foreign goods

  • Access to larger market

  • Increased goods variety

  • No monopolies