Regional Trade Agreements and the major types of RTAs that can influence the international trade

Regional Trade Agreements
Regional trade agreements (RTAs) cover more than half of international trade and operate
alongside global multilateral agreements under the World Trade Organization (WTO). In
RTA member countries commit a number on various tariff preference among them. The main
5 types of RTA are,
1. Partial trade Agreement
2. Free Trade Area
3. Customs Union
4. Common Market
5. Economic union
1. Partial trade Agreement
A trade pact between countries that reduces tariffs for certain products to the countries who
sign the agreement. While the tariffs are not necessarily eliminated, they are lower than
countries not party to the agreement. It is a form of economic integration.
2. Free Trade Agreement / Free Trade Area (FTA)
Whenever some countries sit together and decide to eliminate tariffs, import quotas, and
preferences on most (if not all) goods and services traded...