A free trade area is an association of trading countries whose members agree to remove all trade restrictions among themselves, while each member country imposes identical trade restrictions against nonmember countries.

Question

Quizplus · Accepted Answer

A free trade area involves the removal of trade barriers among member countries, but each member retains its own trade policies and tariffs towards non-member countries, which do not have to be identical.

A Free Trade Area Is an Association of Trading Countries