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What is Free Trade Area

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This problem gives definitions of Free Trade Area, gives some terms of free trade zones of the Americas as an example and gives some relevant references.

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1. A group of states that have reduced or eliminated trade barriers between themselves, but who maintain their own individual tariffs as to other states
2. A designated trade area where tariffs on imported goods are reduced or eliminated for certain countries
3. Area established by agreement among two or more nations within which participants agree to free trade of goods and services among themselves
4. Regional trading bloc that encourages trade by eliminating trade barriers among its members
5. A free trade area is a cooperative arrangement among two or more nations, pursuant to the General Agreement on Tariffs and Trade, whereby trade barriers are removed among the members. The arrangement generally includes a customs union with a common external tariff, although there are exceptions in which members maintain individually separate tariff schedules for external countries. Extensive economic analysis of WTO, NAFTA, and FTAA is available
6. Two or more countries that have eliminated tariff and most non-tariff barriers affecting trade among them, while each participating country applies its own independent schedule of tariffs to imports from non-member countries. An example is the European Free Trade Association (EFTA). Free trade areas are governed by GATT. Foreign trade zones or FTZs are the U.S. form of free trade areas. Free trade ...

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