A Free Trade Area (FTA) is a region where different countries agree to eliminate or lower the trade barriers for each other. FTAs are governed by rules set by the World Trade Organisation (WTO) and often impact customs duty rates between member countries.
For instance, there is a free trade agreement between Mexico, Canada, and the United States, named North American Free Trade Agreement (NAFTA). You can read more about global trade agreements on the WTO official website.
Benefits of Free Trade Area (FTA):
Reduced prices
Increased access to foreign goods
Access to larger market
Increased goods variety
No monopolies