Tariffs
Free Trade Zone
Also known as: FTA zone, Free trade area, 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.
Also known as: FTA zone, Free trade area, 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.
A free trade zone is an agreement between two or more countries to gradually eliminate tariffs and trade barriers for goods and services among themselves, while each country maintains its own tariff policy toward third countries. It differs from a customs union in that it does not adopt a common external tariff. Mexico participates in multiple free trade zones through USMCA, the EU-Mexico FTA, CPTPP, and more than 10 bilateral agreements.
USMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
TradeFree Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
TariffsCustoms Union
An agreement between two or more countries to eliminate tariffs among themselves and establish a common external tariff 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.