Preferential Trade Area is a trading bloc which gives preferential access to certain products from certain countries. This is done by reducing tariffs, but does not abolish them completely. A fruit stand at a market. ... A trade bloc is a large free trade zone or near-free trade zone formed by one or more tax, tariff and trade agreements. ... A tariff is a tax on imported goods. ...

An example of a preferential trading area is one formed by the EU and the ACP countries. The ACP States are the countries that are signatories of the Lomé Convention. ...

PTA is established through trade pact. A trade pact is a wide ranging tax, tariff and trade pact that usually also includes investment guarantees. ...

It can be said to be the weakest form of economic integration. Economic integration is a term used to describe how different aspects between economies are integrated. ...