Economics

Study Notes

Free Trade Agreements

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

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

Free trade agreements

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

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