A Preferential Trading Area (PTA) is a type of trade agreement where participating countries agree to give each other preferential treatment in terms of reduced tariffs and improved market access for certain goods.
Unlike a Free Trade Area, which requires all tariffs to be removed between member countries, PTAs allow for a more gradual reduction of tariffs.
Examples of PTAs include:
The African, Caribbean, and Pacific Group of States (ACP) - a group of 79 African, Caribbean, and Pacific countries that have signed a trade agreement with the European Union (EU)
The Association of Southeast Asian Nations Free Trade Area (AFTA) - a trade agreement among the 10 member states of the Association of Southeast Asian Nations (ASEAN) to promote economic integration in Southeast Asia
The Southern African Development Community (SADC) Free Trade Area - a trade agreement among 15 countries in Southern Africa with the goal of promoting economic integration in the region.