A
preferential trade area (also
preferential trade agreement,
PTA) is a
trading bloc that gives preferential access to certain products from the participating countries. This is done by reducing
tariffs but not by abolishing them completely. A PTA can be established through a
trade pact. It is the first stage of
economic integration. The line between a PTA and a
free trade area (FTA) may be blurred, as almost any PTA has a main goal of becoming a FTA in accordance with the
General Agreement on Tariffs and Trade.