Final answer:
A Preferential Trade Agreement (PTA) is a regional agreement for trade between countries, involving the reduction or elimination of tariffs on certain goods between member countries. It promotes trade and economic cooperation between participating countries. A Free Trade Agreement (FTA) is a regional trade bloc with reduced or eliminated tariffs, aiming to promote free trade by reducing trade barriers.
Step-by-step explanation:
A Preferential Trade Agreement (PTA) is a regional agreement for trade between countries, typically involving the reduction or elimination of tariffs on certain goods between member countries. It is a type of trade agreement that aims to promote trade and economic cooperation between the participating countries. Examples of PTAs include the USCMA/NAFTA, the EU, and TPP. What makes a PTA is the elimination of tariffs on certain goods between member countries. This helps to promote trade and increase economic cooperation between the participating countries. It does not involve the implementation of strict immigration policies, establishment of a common currency, or adoption of a unified legal system. A Free Trade Agreement (FTA) is a regional trade bloc with reduced or eliminated tariffs. It is a type of trade agreement that aims to promote free trade by reducing barriers to trade such as tariffs, import quotas, and nontariff barriers. It is not a treaty emphasizing military alliances, a cultural exchange program, or an international organization for space exploration.