International Business, 2nd Edition by Pearson

108 International Business

FTA

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Figure 8.1(a) Layers of Economic Integration

number of such restrictions vis-à-vis their other trading partners. No discriminatory taxes, quotas,

taris or other trade barriers are allowed between member countries, but they can be used between

non-members.

The North American Free Trade Agreement (NAFTA) and the Latin American Free Trade Area

(LAFTA) now replaced by the Latin American Association of Integration (ALADI) are examples of

this form of cooperation. The United States similarly has free trade agreements with Israel, Jordan,

Chile and Singapore, and is ...