Explain the concept of regional trade agreements.

Explain the concept of regional trade agreements.

Regional trade agreements (RTAs) refer to agreements between two or more countries within a specific geographic region to reduce trade barriers and promote economic integration. These agreements aim to facilitate the flow of goods, services, and investments among member countries by eliminating or reducing tariffs, quotas, and other trade restrictions. RTAs can take various forms, such as free trade agreements (FTAs), customs unions, common markets, or economic unions. They are typically established to enhance economic cooperation, increase market access, attract foreign investment, and foster regional development. Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), the European Union (EU), and the Association of Southeast Asian Nations (ASEAN).