free trade area


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Free Trade Zone

An area, especially consisting of two or more countries, in which there are few or no tariffs or other trade barriers discouraging international trade. For example, the countries in a free trade zone do not subsidize favored industries in order to make them less expensive compared to international competitors. Proponents of free trade argue that it is more economically efficient and helps consumers by promoting competition to keep prices low. Critics contend that free trade is detrimental to local jobs, especially in the developed world. For example, Canada, Mexico and the United States form a free trade zone because they are all members of NAFTA.

free trade area

see TRADE INTEGRATION.

free trade area

a form of TRADE INTEGRATION between a number of countries in which members eliminate all trade barriers (TARIFFS, etc.) among themselves on goods and services but each continues to operate its own particular barriers against trade with the rest of the world. The aim of a free trade area is to secure the benefits of international SPECIALIZATION and INTERNATIONAL TRADE, thereby improving members’ real living standards. The EUROPEAN FREE TRADE ASSOCIATION (EFTA) is one example of a free trade area. See GAINS FROM TRADE, NORTH AMERICAN FREE TRADE AGREEMENT, MERCOSUR, ASIAN PACIFIC ECONOMIC COOPERATION, ASSOCIATION OF SOUTHEAST ASIAN NATIONS.
References in periodicals archive ?
My idea is that our two great trading blocks should set a new, overriding vision for their economic relationship: a Transatlantic Free Trade Area," Mr.
Boontipa said the senior officials took note of a preliminary study made by a working group set up between ASEAN and China, which proposed that an ASEAN-China free trade area be established within 10 years after formal negotiations begin.
As the majority of provisions of the Agreement especially concerning functioning of the free trade area is so-called homework for our state and creating of such conditions, in the first place of legal ones, under which the free trade zone will be mutually beneficial.
Are the Southern Common Market (Mercosur) and Washington's Free Trade Area of the Americas compatible?
Thailand is exploring bilateral free-trade agreements (FTA) with major trading partners outside the ASEAN Free Trade Area (AFTA) to boost exports and expand markets, the director general the commerce ministry's business economic department said Thursday.
The United Steelworkers of America (USWA) is calling for a Congressional investigation into "a massive police state," created in part with federal funds, to intimidate union members and others critical of the proposed Free Trade Area of the Americas (FTAA) and limit their rights during FTAA meetings in Miami last week.
Prime Minister of Ukraine Mykola Azarov has commissioned to elaborate practical algorithms and mechanisms of interaction with the Customs Union and in the future with Eurasian economic union under conditions of a free trade area between Ukraine and the European Union.
The supposed hemispheric "free trade zone," the Free Trade Area of the Americas (FTAA), would actually be an embryonic mega-state modeled after the socialistic European Union (EU).
Ten years ago, Latin America's political and business leaders met in Miami to lay the groundwork for a Free Trade Area of the Americas (FTAA), a free trade zone that would run from the northern reaches of Alaska down to the tip of Patagonia.
By giving Malaysia a two-year reprieve before it has to cut car import tariffs, the door is now open to other members to take advantage of the exemption clause to delay opening up their sensitive industrial sectors, thereby diluting the ASEAN Free Trade Area (AFTA), which is scheduled to start for ASEAN founding members in 2002.
As a means to promote the Free Trade Area of the Americas, expand relations between strategically important partners, and rationalize the regional investment climate, a trade agreement with Bolivia, Colombia, Ecuador, and Peru is an important initiative, beginning with those nations best able to take on the responsibilities and disciplines of a free trade agreement.
Unilateral introduction of customs restrictions violates the Agreement on creating free trade area between the CIS states.