Lu Xun Posted March 20, 2012 Report Share Posted March 20, 2012 Hi. I'm writing an IA for international economics and I want to make sure that I understand the news correctly. If peru signed an free trade agreement with costa rica and panama, would this be a free trade area or a preferential trade area?This is the news: http://www.fis.com/fis/worldnews/worldnews.asp?l=e&country=0&special=&monthyear=&day=&id=42638&ndb=1&df=0I'm also planning to write about trade creation. Is it suitable?Any advice would be greatly appreciated! Reply Link to post Share on other sites More sharing options...
miamonique Posted April 5, 2012 Report Share Posted April 5, 2012 It is a free trade area because they are signing a free trade agreement. A preferential trade area reduces tariffs and protectionism, but does not eliminate it, and so is not completely free trade. Reply Link to post Share on other sites More sharing options...
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