What is the key characteristic of a free trade agreement?

A free trade agreement is fundamentally designed to reduce or eliminate trade barriers between the participating countries. This includes tariffs, quotas, and other regulatory obstacles that might hinder trade. By fostering an environment where goods and services can move more freely across borders, member countries can benefit from increased economic cooperation, improved market access, and enhanced competition.

The ultimate goal of such agreements is to stimulate trade and economic growth among the member states, leading to a more integrated economic landscape. The focus is on creating a level playing field where trade can flourish, which aligns directly with the concept of a free trade agreement. This characteristic is what distinguishes it from other arrangements that may impose restrictions or encourage protectionist measures.