Sovereign nations unite, usually at the regional level, to conclude free trade agreements. Free trade agreements will be put in place to reduce trade barriers and boost trade between Member States. Member States that are part of the free trade area act freely with each other, while maintaining trade barriers and tariffs for third countries. Free trade agreements are generally seen as positive effects on economic growth, especially for the smaller countries of the agreement. Trade blocs are groups of countries that have a common agreement to reduce barriers to trade across the group (for example. B, NAFTA, ASEAN and the European Union). Trade blocs are relationships between countries generally located in the same region to facilitate free trade agreements. Trade blocs include the North American Free Trade Agreement (NAFTA), the Central American Free Trade Agreement (CAFTA), the Association of South Asian Nations (ASEAN), the European Union (EU), Mercado Comun del Sur (Mercosur) and the Southern African Development Community (SADC). Southeast Asia has experienced unprecedented and astonishing economic growth over the past three decades since the creation of ASEAN. In 1967, ASEAN`s total trade was $10 billion. In 2006, total trade reached $1.4 trillion. A free trade area is the region that includes a trade bloc whose Member States have signed a free trade agreement.
These agreements include cooperation between at least two countries to reduce trade barriers, import quotas and tariffs and to strengthen trade in goods and services between them. If individuals are free, in addition to a free trade agreement, to move between countries, this would also be considered an open border. It can be seen as the second stage of economic integration.  DR-CAFTA. Dr.-CAFTA, formerly known as CAFTA, is the free trade agreement between Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, the United States and, more recently, the Dominican Republic, which implemented the agreement in March 2007. Dr. CAFTA, which is very similar in its common NAFTA objectives, is seen by many as an additional step in the development of a fully globalized free trade agreement. Dr.-CAFTA represents the future of free trade and the development of smaller free trade zones to larger areas, with the ultimate goal of involving almost every nation.