Free trade is trade between countries without protective tariffs… Read more in our article
Free trade is trade between countries without protective tariffs, quotas on imports or exports, or other types of restrictions.
A free trade agreement is an arrangement between countries in which trade in products and services is agreed to pass without restrictions between them. A free trade area is an area in which countries have agreed not to restrict trade and/or limit the imposition of tariffs and quotas.
North America is one of the largest free trade zones in the world. It was formed by the North American Free Trade Agreement (NAFTA) it had concluded by Canada, the United States, and Mexico on 1 January 1994.
Through the North American Free Trade Agreement, North American countries agreed to encourage trade across their borders. The United States is also a member of the CAFTA-DR Free Trade Area, which includes the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
In addition, the United States has free trade agreements with Australia, Bahrain, Chile, Jordan, Morocco, Oman, Peru, and Singapore, and agreements have been signed but not implemented by Congress with the countries of South Korea, Colombia, and Panama.
Another free trade area is ASEAN and China (Association of Southeast Asian Nations). Its member states include Indonesia, Brunei Darussalam, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and the People’s Republic of China.
ASEAN became a free trade area in 1992. The ASEAN-China Free Trade Area came into being on January 1, 2010. The ASEAN-India Association came into force on the same day.