Preferential Trade Area
/ˌprɛfəˈrɛnʃəl treɪd ˈɛəriə/
Definitions
- (n.) A regional trade bloc where member countries reduce tariffs and trade barriers among themselves but maintain independent policies toward non-members.
The Preferential Trade Area agreement allowed the member states to enjoy lower tariffs on intra-regional goods.
Forms
- preferential trade area
- preferential trade areas
Related terms
See also
Commentary
Preferential Trade Areas are often precursors to more integrated trade agreements, such as customs unions; drafters should clarify the scope of tariff preferences and exclusions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.