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A free trade area is a region where several nations have signed free trade agreements and keep little to no trade restrictions like tariffs or quotas among themselves.
Free trade zones encourage international trade and the benefits that flow from it, as well as the global division of labor and specialization, but they have come under fire for the expenses connected with advancing economic integration and for arbitrarily limiting free trade.
A free trade area is a collection of nations that have voluntarily decided to reduce or do away with trade restrictions. Although the terms of the agreement and the ensuing breadth of free trade are susceptible to politics and international relations, free trade areas tend to encourage free trade and the international division of labor.
Free trade zones have advantages, disadvantages, advocates, and opponents.
Free trade areas benefit consumers by increasing their access to cheaper and/or higher quality foreign goods and by lowering prices as governments lower or do away with tariffs. Producers have access to a significantly larger pool of potential consumers or suppliers. Additionally, free trade zones can promote national economic growth, raising the standard of living for a portion of the populace.
