A free trade agreement is a trade agreement between countries that aims to eliminate customs tariffs and establish quotas on the import and export of goods and services. In other words, it is a trade agreement between countries to establish trade relations in order to guarantee the free movement of goods between their signatory countries. Free trade is one of the stages of economic integration (Tariff Preferences Zone, Free Trade Zone, Customs Union, Common Market).
The GATT (General Agreement on Tariffs and Trade) by publishing article XXIV, established rules to create a free trade area and customs union. What differentiates the customs union from free trade is that the customs union replaces national customs tariffs and establishes a common external tariff for all countries. Free trade, on the other hand, provides a relationship only between the signatory countries of the treaty and respects the tariff policies of each country.
According to the GATT, for an agreement to be considered a free trade zone, it is necessary that the goods traded between the group's members exceed 80%. For this relationship, partner countries reduce or eliminate customs barriers on traded goods, stimulating trade between group members and ensuring free competition. A good sold nationally will have the same price as a good sold in another signatory country.
Aiming at an improvement in the economy of developing countries , our nation proposes the creation of a trade union between countries that make up the Pacific bloc improving the performance in the game significantly , thanks for the compression of all Dom Fernando I Supreme Leader of the Nation Of Nescau
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