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Examples of Free Trade Areas Include

The document provides examples of free trade areas including EFTA (Norway, Iceland, Switzerland, Liechtenstein), NAFTA (United States, Mexico, Canada), and SAFTA (South Asian countries). It discusses that the purpose of free trade agreements is to reduce barriers to trade and investment between participating countries. Some benefits mentioned include increased prosperity, economic growth, efficiency, and innovation. India has signed several bilateral free trade agreements with countries like Sri Lanka, Afghanistan, and others. Regional integration can help overcome divisions that impede trade and aims to promote economic growth.

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Kartic Jain
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67 views9 pages

Examples of Free Trade Areas Include

The document provides examples of free trade areas including EFTA (Norway, Iceland, Switzerland, Liechtenstein), NAFTA (United States, Mexico, Canada), and SAFTA (South Asian countries). It discusses that the purpose of free trade agreements is to reduce barriers to trade and investment between participating countries. Some benefits mentioned include increased prosperity, economic growth, efficiency, and innovation. India has signed several bilateral free trade agreements with countries like Sri Lanka, Afghanistan, and others. Regional integration can help overcome divisions that impede trade and aims to promote economic growth.

Uploaded by

Kartic Jain
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Examples of free trade areas include:

EFTA: European Free Trade Association consists of Norway,


Iceland, Switzerland and Liechtenstein.

NAFTA: United States, Mexico and Canada (being renegotiated)

SAFTA: South Asian Free Trade Area comprising Afghanistan,


Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri
Lanka.
Purpose of a free trade agreement

FTAs are treaties between two or more


countries designed to reduce or eliminate
certain barriers to trade and investment, and to
facilitate stronger trade and commercial ties
between participating countries.
Example of free trade

A free trade area (FTA) is where there are no


import tariffs or quotas on products from one
country entering another. Examples of free
trade areas include:

SAFTA: South Asian Free Trade Area


comprising Afghanistan, Bangladesh, Bhutan,
India, Maldives, Nepal, Pakistan and Sri Lanka.
benefits of free trade

Free trade increases prosperity for the citizens


of all participating nations—by allowing
consumers to buy more, better-quality
products at lower costs. It drives economic
growth, enhanced efficiency, increased
innovation, and the greater fairness that
accompanies a rules-based system.
Indian treaties:

India has signed bilateral FTAs with Sri Lanka


(1998), Afghanistan (2003), Thailand (2004),
Singapore (2005), Bhutan (2006), Nepal (2009),
Korea (2009), Malaysia (2011)
and Japan (2011). Free Trade Agreement
(SAFTA, 2004) and the India-Association of
Southeast Asian Nations Agreement (ASEAN,
2010)
Regional integration
Helps countries overcome divisions that impede the
flow of goods, services, capital, people and ideas.
These divisions are a constraint to economic growth,
especially in developing countries.

The following are examples of


Regional Economic Integration: NAFTA (North
American Free Trade Agreement)-An agreement
among the U.S.A., Canada, and Mexico. EU (European
Union)-A trade agreement with 15 European countries.
There are four main types of regional economic integration.

 Free trade area. This is the most basic form of


economic cooperation
 Customs union. This type provides for
economic cooperation as in a free-trade zone.
 Common market
 Economic union
Objectives of regional integration

Regional integration arrangements are mainly


the outcome of necessity felt by nation-states
to integrate their economies in order to
achieve rapid economic development,
decrease conflict, and build mutual trusts
between the integrated units.
Factors that promote regional integration:

(a) Common cultural heritage;


(b) common economic and social issues;
(c) effects of globalization trade liberalization
and trading blocs;
(d) vulnerability to economic shocks and
natural disasters.

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