Overview
Regional Trade Agreements (RTAs) are essential tools for enhancing trade and economic cooperation among countries in a specific region. By reducing tariffs and other trade barriers, RTAs aim to increase trade volume, stimulate economic growth, and attract foreign investment. However, while they offe...
Key Terms
Example: Countries may engage in trade liberalization to boost economic growth.
Example: High tariffs on steel imports can protect local steel manufacturers.
Example: The Southern African Customs Union is an example of a customs union.
Example: The North American Free Trade Agreement (NAFTA) is a well-known free trade agreement.
Example: Trade diversion can occur when a country imports goods from a member of an RTA instead of a more efficient non-member.
Example: The European Union represents a high level of economic integration.