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 easier and more cost-effective exchange of goods and services, promoting economic cooperation and growth. Each member country maintains its own trade policies with non-member countries. One well-known example of a free trade area is the North American Free Trade Agreement (NAFTA), which was established between the United States, Canada, and Mexico. This agreement aimed to enhance trade and investment among the three nations, leading to increased economic integration and competitiveness in the global market.