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 ?
According to the African Union, the establishment of the Continental Free Trade Area provides a comprehensive framework to pursue a developmental regional strategy alongside Boosting Intra-African Trade (BIAT) action plan which targets to double intra-African trade flows by January 2022.
On this occasion, the Minister of Trade talked with several African Ministers on the economic and trade relations with their respective countries and means likely to activate the negotiations process on the creation of the free trade area.
Abdelatty stated that the heads of state and governments of these countries will sign a convention to establish the Free Trade Area which will enhance the cooperation between African countries with regard to strengthening the bilateral trade volume.
The Deep and Free Trade Area Agreement is a component of EU-Georgia Associated Agreement, which is implemented in the
These free trade areas will be part of the Association Agreement, under negotiation with Georgia and Moldova since July 2010 and January 2010, respectively, in the framework of the Eastern Partnership and the European Neighbourhood Policy.
The so-called 'Grand' Free Trade Area would cross 26 countries, stretching from the Cape to Cairo, with a combined population of 700 million people.
Summary: Ukraine intends to agree on creation of free trade area with Morocco, First Vice Prime Minister-Economic Development and Commerce Minister Andrii Kliuev told the Uriadovyi Kurier government's newspaper.
Amman, May 19 (Petra) a" Trade exchange between Jordan and members of Greater Arab Free Trade Area jumped by 16 per cent during the first quarter of 2010, compared to the same period of last year, according to official figures.
Pennsylvania) begins by outlining the contours and architecture of the bilateral and multilateral agreements that Syria has entered into since the middle and late 1990s--particularly the Greater Arab Free Trade Area and the Euro-Mediterranean Partnership--along with the policy shifts generated by ascension to these trading regimes.
in developing the NAFTA and Pan-European rules of origin, and compares and discusses the parallel experiences of the major southern regional trade agreements, including ASEAN and the ASEAN-China free trade area, and examines the evolution of the rules of origin.
Analysts trace the weakening to a decision by Pakistan to enter into Free Trade Area (FTA) pacts with several of its neighbors under the ambit of the South Asian Association for Regional Cooperation (SAARC).
I believe this idea deserves serious consideration" Such an APEC Free Trade Area would be a formidable economic bloc indeed, comprising 45 percent of world trade and 41 percent of the world's population.