Free Trade Agreement (FTA) | Logistics Glossary
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GLOSSARY

Free Trade Agreement (FTA)

The free trade agreement allows two or more countries to trade with lesser barriers for import or export.

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What does the Free Trade Agreement (FTA) mean in trade?

The Free Trade Agreement (FTA) specifies a set of obligations between two or more trading countries. This agreement puts fewer barriers on trade for importing or exporting specific goods and services, making it much easier to trade. The FTA means that the trading countries will have little or no imposed government tariffs, subsidies, quotas, or prohibitions to hold back the exchange.

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