FTAs are legally binding contracts between two or more countries to bring about closer economic integration. One of the aims of FTAs is to eliminate trade barriers and allow goods and services to flow freely between countries. Trade barriers can be tariffs (taxes), onerous regulations, etc. FTAs provide for tariff concessions, i.e. reduction or elimination of import tariffs or customs duties, on products traded between the partner nations.

When you export goods to buyers in FTA-partner countries, your buyers pay less duty. In other words, FTAs make your exports more attractive. When you import goods from sellers in FTA-partner countries, you pay less or no duty. In other words, you reduce the cost of importing goods.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

Free Member, Joined :05/11/2007
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