Free Trade Agreement
FTA
Intermediate Level
Global
International Trade
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Definition
A pact between countries to reduce or eliminate barriers to trade such as tariffs and quotas.
Detailed Explanation
FTAs promote trade by reducing costs. They can cover goods, services, and intellectual property. Examples include NAFTA, EU single market. India has FTAs with ASEAN, Japan, South Korea.
Example
India's FTA with ASEAN allows duty-free trade in many goods with Southeast Asian countries.