Preferential trading area
From Wikipedia, the free encyclopedia
| Trade Series |
|---|
| International trade |
| History of international trade
|
| Free trade |
| Trade pact |
| Trade bloc |
| Free trade area |
| Customs union |
| Monetary union |
| Common market |
| Economic and monetary union |
A Preferential Trade Area is a trading bloc which gives preferential access to certain products from certain countries. This is done by reducing tariffs, but does not abolish them completely.
An example of a preferential trading area is one formed by the EU and the ACP countries.
PTA is established through trade pact.
It can be said to be the weakest form of economic integration.
