Study Notes

Free Trade Agreements

Last updated 3 Nov 2017

A free trade area (FTA) is where there are no import tariffs or quotas on products from one country entering another.

Examples of free trade areas include:

• EFTA: European Free Trade Association consists of Norway, Iceland, Switzerland and Liechtenstein
• NAFTA: United States, Mexico and Canada (being renegotiated)
• SAFTA: South Asian Free Trade Area comprising Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka
• Pacific Alliance: Chile, Colombia, Mexico and Peru
• There are many bi-lateral free trade agreements signed between two countries or between two regional trading blocs e.g. the recently-signed Australia - China Free Trade Agreement

Share this content: