A free trade agreement (FTA) is a pact between two or more countries, which sets the guidelines for trade and commerce between them. As the name suggests, it aims to promote free trade by removing barriers to imports and exports. But what is a free trade agreement called? Let`s dive into the details.

Free trade agreements can have different names depending on the region or countries involved. In North America, the FTA is commonly known as the North American Free Trade Agreement (NAFTA). It was signed by the United States, Canada, and Mexico in 1994, and aimed to eliminate tariffs on goods and services traded among these countries.

In Europe, the most well-known FTA is the European Union (EU). It`s a political and economic union of 27 member states, headquartered in Brussels, Belgium. Among its many functions, the EU has established FTAs with several countries and regions, including Norway, Switzerland, and South Korea. These agreements are referred to as EU free trade agreements.

Elsewhere in the world, some of the most prominent FTAs include the Trans-Pacific Partnership (TPP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The TPP was initially signed by twelve countries, including the United States, but was later abandoned by the U.S. after the election of President Trump. The remaining eleven countries continued with negotiations and finalized the agreement as the CPTPP.

Another FTA that is gaining traction is the African Continental Free Trade Area (AfCFTA). It was established in 2018 and aims to promote intra-African trade by creating a single market with free movement of goods, services, and people across the continent. Currently, 54 out of 55 African Union member states have signed the agreement, and 41 have ratified it.

In conclusion, what is a free trade agreement called? The answer can vary depending on the region or countries involved. Some of the most well-known FTAs include NAFTA, EU free trade agreements, TPP/CPTPP, and AfCFTA. Regardless of their name, FTAs aim to promote free trade by eliminating barriers to imports and exports and improving economic growth and cooperation between nations.