A Free Trade Area is a region where countries agree to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves. This arrangement allows for the free flow of goods and services, promoting economic cooperation and increasing market access for businesses. Countries within a Free Trade Area maintain their own trade policies with non-member countries. This means they can set different tariffs and regulations for trade outside the area, allowing them to protect their domestic industries while benefiting from increased trade with their partners. Examples of Free Trade Areas include the North American Free Trade Agreement (NAFTA) and the European Free Trade Association (EFTA).