A Free-Trade Agreement (FTA) is a treaty between two or more countries to establish a free trade area where commerce in goods and services that can be conducted across borders with tariffs and non-tariff trade barriers and generally abolished but with no common trade policy toward non-members. The North American Free Trade Area (NAFTA) and the European Free Trade Association (EFTA) are examples of free trade areas.
Reference Definition by Wikipedia: A free-trade area is the region encompassing a trade bloc whose member countries have signed a Free-Trade Agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers – import quotas and tariffs – and to increase trade of goods and services with each other. If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.
Related Definitions in the Project: The Project Management; Project Contract; Procurement
