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What is a Free Trade Agreement?

  Free Trade Agreement refers to an agreement for free trade among participating countries, allowing free flow of goods (products). A region engaged in a FTA can also be called Free Trade Area. The contracting states have canceled tariffs and non-tax barriers for most of the goods, relaxed restrictions on the market access for most service sectors, developed investment, and promoted the free flow of production factors such as goods, services, capital and personnel. Examples of Free Trade Area include North American Free Trade Area, China-ASEAN Free Trade Area.

 

 
 
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