Topics

Preferential Trade Area

Preferential trade area occurs where there is reduced protectionism on a number of select goods/services amongst the countries involved. This could just be between two countries i.e. bilateral trade agreement.

A preferential trade area is a group of countries that agree to reduce tariffs and other trade barriers on certain goods and services among themselves, while maintaining their own barriers against imports from non-member countries. The goal of a preferential trade area is to encourage trade among member countries and boost their economic development.

© 2002-2025 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

Back to top