Free Trade Agreement (FTA) – UPSC Prelims

FTA is an arrangement between two or more countries to reduce trade barriers in imports and exports among them.

With  FTA, goods and services can be exchanged across international borders with limited or no government tariffs, quotas, or subsidies.

In the current world, free trade policy is often implemented by means of a formal and mutual agreement of the nations involved. However, a free-trade policy may simply be the absence of any trade restrictions.

Based on the level of openness in the trade between the countries free trade policies can be categorized as,