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International Relations GS 2 In the news 57 times

Free Trade Agreements

Concept and WTO Framework

A Free Trade Agreement (FTA) is a pact between two or more nations to reduce or eliminate barriers — tariffs, quotas, and non-tariff barriers — on goods and services traded between them. Under WTO rules, all members must extend equal trade terms to all partners under the Most Favoured Nation (MFN) principle (Article I of GATT). FTAs are a permitted exception to the MFN rule, allowing preferential access between signatories.

Key details
  • Comprehensive Economic Cooperation Agreements (CECAs) and Comprehensive Economic Partnership Agreements (CEPAs) are more expansive than traditional FTAs — they cover goods, services, investment, intellectual property, government procurement, and dispute resolution.
  • India's FTA with the UAE (signed 2022) and Australia (2022) are structured as CEPAs.
  • India's FTA with the UK covers goods, services, investment, and a "mobility chapter" for professionals and students.
  • WTO's Article XXIV of GATT permits FTAs if they eliminate tariffs on "substantially all trade" between parties.
In the news

Tracked since February 14, 2026 · last seen August 24, 2026 · updates as the daily brief publishes

Plus 27 earlier mentions since February 14, 2026.

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