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Free trade agreement
Internationalab 13 J.
A treaty between countries to reduce tariffs and trade barriers. It makes imports cheaper and boosts trade. Well known: the EU single market, CETA (EU–Canada), TTIP (failed).
Free trade agreements (FTAs) are treaties between countries that make mutual trade easier – by removing tariffs, quotas and bureaucratic hurdles.
Important agreements:
• EU single market: the largest free trade area in the world – 450 million people, 0% tariffs within the EU
• CETA: EU–Canada (provisionally in force since 2017)
• RCEP: the world's largest trade agreement (China, Japan, South Korea, ASEAN, Australia)
• TTIP: EU–USA (negotiations halted in 2016, politically controversial)
What does this mean for you? Cheaper imports (electronics, clothing, food), more choice, but also competition for domestic producers.
Did you know? The EU has free trade agreements with more than 70 countries. The EU–Japan agreement (2019) abolished tariffs on 97% of all goods – car imports became up to 10% cheaper.
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