Free Trade Area

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Dictionary Says

Definition of 'Free Trade Area'

A group of countries that invoke little or no price control in the form of tariffs or quotas between each other. Free trade areas allow the agreeing nations to focus on their competitive advantage and to freely trade for the goods they lack the experience at making, thus increasing the efficiency and profitability of each country.
Investopedia Says

Investopedia explains 'Free Trade Area'

One of the most well known free trade areas was created because of the signing of the North American Free Trade Agreement (NAFTA). This agreement was made between Canada, the United States and Mexico and encourages trade between these North American countries. The agreement was signed on January 1, 1994 and has since created one of the world's largest free trade areas.
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