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:
“When the passage “All men are born free and equal,” when that passage was being written were not some of the signers legalised owners of slaves?”
—Herman Melville (1819–1891)
“And there is no trade or employment but the young man following it may become a hero.”
—Walt Whitman (1819–1892)
“The difference between de jure and de facto segregation is the difference open, forthright bigotry and the shamefaced kind that works through unwritten agreements between real estate dealers, school officials, and local politicians.”
—Shirley Chisholm (b. 1924)