ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Free trade agreements reduce or eliminate barriers to trade across international borders. Free trade is the opposite of trade protectionism.

Detailed explanation-2: -Free trade agreements (FTAs) help expand global market opportunities for U.S. producers and exporters. Bilateral and multilateral trade agreements strip away trade barriers, reduce or eliminate tariffs, and promote investment and economic growth.

Detailed explanation-3: -Ability to serve local customers better. Improved access to supply chains and regional networks. Lower labour and operating costs. Reduction or elimination of legal and other regulatory barriers.

Detailed explanation-4: -Free trade agreements don’t just reduce and eliminate tariffs, they also help address behind-the-border barriers that would otherwise impede the flow of goods and services; encourage investment; and improve the rules affecting such issues as intellectual property, e-commerce and government procurement.

Detailed explanation-5: -FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.