A free trade agreement (FTA) is a treaty between two or more countries that reduces or eliminates tariffs, quotas, and other trade barriers on goods and services exchanged between them. FTAs promote trade liberalization while allowing members to maintain independent external trade policies.
What Is a Free Trade Agreement? A free trade agreement (FTA) is a treaty between two or more countries that reduces or eliminates barriers to trade — tariffs, quotas, import licenses — on goods and services exchanged between the signatory countries. Within the FTA, goods move with minimal or no duties; outside the FTA, each country maintains its own trade policy toward non-members. FTAs are one of the most common forms of regional economic integration and a primary vehicle through which countrie