Questions and Answers
What is a free trade area?
A free trade area is an agreement between two or more countries to reduce or eliminate customs duties and non-tariff trade barriers between the member countries while maintaining individual tariff programs for external countries.
What is the difference between a free trade area and a customs union?
A free trade area allows for the reduction or elimination of internal tariffs and trade barriers between member countries, while maintaining individual tariff programs for external countries. On the other hand, a customs union not only has internal tariff reduction or elimination but also establishes a common external tariff on imported products from countries outside of the union.
Which countries does the United States have free trade agreements with?
The United States has free trade agreements with Canada and Mexico (NAFTA/TLCAN) as well as a separate agreement with Israel.
