Definitions for "Free trade area"
A group of countries that adopt free trade (zero tariffs and no other restrictions on trade) on trade among themselves, while not necessarily changing the barriers that each member country has on trade with the countries outside the group.
Members fix their own tariffs on trade with the rest of the world but there are no internal tariffs.
A group of two or more countries that agree to remove barriers affecting substantially all trade with each other, while each maintains its own schedule of tariffs and other regulations on imports from non-member countries. Because some goods --such as farm products --may not be traded in significant quantities between partners in an FTA, coverage of " substantially all " of their trade does not necessarily mean trade barriers are eliminated in all sectors. Indeed, agriculture is exempted from coverage in many FTAs.