Free trade area and Preferential trading area - difference
|What is the difference between Free trade area FTA and Preferential trading area PTA ? Are there any differences or is it the same ?|
|Free trade area is not the same as Preferential trading area. There are similarities, but also an essential differences between both.|
FTA is a trading bloc, whose members have signed a free trade agreement, to reduce trade barriers between them.
PTA is a trading bloc, giving preferential access to specific products from the participating members. It is done by reducing of the tariffs, but not by abolishing them completely.
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