A Free Trade Agreement ( Fta )

1752 Words Jul 12th, 2015 8 Pages
A free trade agreement (FTA) is a binding trade agreement signed two or more countries to agree on mutual granting of tariff preferences and reduction of non-tariff trade barriers in goods and services. In order to deepen the economic integration of the signatory countries, the FTA also incorporates issues of access to new markets, other regulatory issues related to trade, such as intellectual property, investment, competition policy, financial services, telecommunications, electronic commerce, labor and environmental provisions and mechanisms of trade protection and dispute settlement. FTAs have an indefinite term, that is, to remain in force over time so they have in perpetuity. The free trade agreements bring benefits which are related not only commercial aspects but are positive for the economy as a whole: can reduce and often eliminate non-tariff and tariff barriers to trade; contribute to improving the competitiveness of companies (since it is possible to provide raw materials and machinery at lower costs); facilitate the increased flow of foreign investment, by providing certainty and stability over time investors.

Economy is a huge topic that looks to analyze the extraction, production and use of goods. Through human history trade has been a form and part of economy. In the past trade was used as the main source to obtain goods. In a trade there are two or more providers involved. When trades are done is because the two sides involved are going to win something…
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