Free trade agreements (FTAs) are trade deals between two or more countries that aim to remove barriers and facilitate the free flow of goods and services between them. In Europe, there are several FTAs in place that have helped to boost trade and economic growth across the region. In this article, we will take a closer look at what free trade agreements are in Europe.
The European Union (EU) is a major player in promoting free trade across the world. The EU has signed FTAs with many countries, both within and outside Europe. These agreements have opened up new markets for goods and services and helped to create jobs and economic growth.
One of the most important free trade agreements in Europe is the European Free Trade Association (EFTA). EFTA is made up of four countries: Iceland, Liechtenstein, Norway, and Switzerland. These countries have a close relationship with the EU and have signed several FTAs with the bloc. The EFTA member states have also signed bilateral FTAs with other countries, including Canada, Chile, and South Korea.
The EU has also signed several FTAs with non-EU countries in Europe. For example, the EU has an FTA with Serbia, which has helped to boost trade and investment between the two countries. Other countries with FTAs with the EU include Ukraine, Moldova, and Georgia.
Outside Europe, the EU has signed several trade deals that also have implications for European businesses. The EU has an FTA with Canada, known as the Comprehensive Economic and Trade Agreement (CETA). This agreement has eliminated almost all tariffs between the EU and Canada and has opened up new markets for goods and services. The EU has also signed an FTA with Japan, which has also led to increased trade and investment between the two regions.
In addition to these agreements, the EU is currently negotiating several other FTAs with countries around the world. For example, the EU is in talks with Australia, New Zealand, and the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) to sign new FTAs.
In conclusion, free trade agreements are essential for promoting trade and economic growth in Europe. The EU has signed several FTAs with countries both within and outside Europe, which have helped to create jobs and open up new markets for goods and services. As businesses continue to face new challenges in a rapidly changing global economy, FTAs will remain a critical tool for promoting growth and prosperity in Europe.