Glossary
Free Trade Agreement (FTA)
An agreement between two or more countries that eliminates or reduces trade barriers and tariffs on goods and services, promoting international trade.
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What does the Free Trade Agreement (FTA) include?
A Free Trade Agreement (FTA) is a treaty or agreement between two or more countries to promote international trade by reducing or eliminating trade barriers, such as tariffs and quotas, on goods and services exchanged between the signatory nations. FTAs are designed to facilitate cross-border commerce, enhance economic cooperation, and create a more favorable business environment for companies operating within the member countries.
By reducing trade barriers, FTAs aim to increase market access, boost export opportunities, attract foreign investment, and encourage economic growth. FTAs can have a significant impact on global supply chains, as they affect the cost, efficiency, and competitiveness of international trade for businesses operating within the member countries.
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