A
free-trade area is the region encompassing a
trade bloc whose member countries have signed a
free trade agreement (
FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers—
import quotas and
tariffs— and to increase trade of
goods and services with each other. If people are also free to move between the countries, in addition to FTA, it would also be considered an
open border. It can be considered the second stage of
economic integration.