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Free Trade Agreement (FTA)

economy

Definition

A Free Trade Agreement (FTA) is a pact between two or more nations to reduce or eliminate barriers to trade, such as tariffs and quotas, among them. FTAs aim to encourage cross-border commerce and stimulate economic growth by making it easier and cheaper for businesses to export and import goods and services. These agreements can also address other trade-related issues, like property rights and labor and environmental standards.