Also known as: Commercial agreement, Free trade agreement
A pact between two or more countries establishing preferential conditions for goods and services exchange, reducing tariff and non-tariff barriers to bilateral or multilateral trade.
A trade agreement is a convention between two or more countries establishing rules and preferential conditions to facilitate trade. It can range from tariff reductions to complete barrier elimination, including chapters on investment, intellectual property, government procurement, and digital trade. Mexico is one of the countries with the most trade agreements worldwide, with over 14 FTAs covering more than 50 countries, including USMCA, CPTPP, and agreements with the EU, Japan, Colombia, Chile, and more.
Free Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
TariffsFree Trade Zone
An area formed by two or more countries that eliminate tariffs and trade restrictions between them while each maintains its own tariff policy toward third countries.
TariffsPreferential Tariff Rate
A reduced or zero duty rate applied to imports from countries with which a free trade agreement or other preferential arrangement is in effect.