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 ?
'Since the establishment of ECOWAS in 1975 with the purpose of promoting regional cooperation and economic integration, the commission has been making concerted efforts, aimed at enabling free trade areas and common market.
The African free trade pact came into effect at the end of last month after two more countries ratified the agreement.Kenya Dairy Board managing director Margaret Kibogy says Nairobi is seeking to lower of the cost of production from the current Sh25 per litre to Sh15 in order to remain competitive in the wake of the free trade area.
From the start of the negotiations, we had an impact assessment which evaluated the expected effects of creating the free trade area. It revealed that the forecast fall in tax receipts would be mitigated by the increase in Senegal's exports, which ought to be far greater than the increase in its imports of African goods.
According to official information, Qinzhou Free Trade Area will be actively integrated into the construction of the Belt and Road initiative and the Southern Transport Corridor, and closely stick to the development strategy of the central government.
She said last night: "Our proposal will cindus agricult a create a UK-EU free trade area which establishes a common rule book for industrial goods and agricultural products.
'Our countries have in March of this year signed on to this historic trade agreement, the CFTA, which gave birth to the world's largest free trade area since the WTO which was formed in 1995.
More on this: Why Africa's free trade area offers so much promise
The session will be addressed by the President of the Republic of Niger and the African Free Trade Area .
All 54 countries on the continent are projected to be in the Continental Free Trade Area, or CFTA, which "is shaping up to be the largest free trade area in the world in terms of the population it covers," notes Amy Copley for the Brookings Institution.
From the war until 1973, we lived in free trade areas. We had no problems; we had agreements with USA, Commonwealth, and many other countries including, as I recall, EFTA (European Free Trade Area) Norway, Sweden and Denmark.
Minister of Trade Mohsen Hassen recommended to adopt more flexibility in the negotiation related to the creation of an African free trade area and endeavour to finalise it in the dates set by the Presidents of the African Union (AU) countries.