What is the purpose of a Free Trade Area?

The purpose of a Free Trade Area is to remove barriers to trade between member countries. This typically includes the elimination or reduction of tariffs, quotas, and other trade restrictions on goods and services exchanged among the countries that are part of the agreement. By facilitating easier and more efficient trade, member countries can benefit from increased market access, enhanced competition, and improved economic cooperation.

Free Trade Areas aim to promote economic growth by allowing countries to specialize in the production of goods and services they are most efficient at producing, which can lead to lower prices and increased variety for consumers. In contrast, the other choices do not accurately reflect the objective of a Free Trade Area. For example, eliminating all government regulations or creating a single currency are characteristics related to different types of economic integration, such as a customs union or economic union. Restricting imports while promoting exports is contrary to the fundamental principle of free trade, which seeks to enable open trade between member nations.