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Saturday, April 27, 2024

Free trade agreement

Bi- or multi-lateral agreement to remove all trade barriers between signatory states


Free trade agreement
Free trade agreement

A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occur when two countries agree to loosen trade restrictions between the two of them, generally to expand business opportunities. Multilateral trade agreements are agreements among three or more countries, and are the most difficult to negotiate and agree.

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