Preferential trade agreements (EPZs) are formal trade agreements between countries that benefit from trade between them. In many cases, these benefits are the local product; Nearby countries are better able to trade because of lower transport costs and increased transparency opportunities. When trade agreements are constructed in this regional way, they are sometimes referred to as regional trade agreements or RTAs. The question of whether EPZs increase or divert trade are the subject of much discussion. The basic principles of these two arguments are that while the PTA may promote trade that would not otherwise exist, it also has the potential to steal trade that would otherwise take place with members outside the EPZ and far from the cheapest producer. Ideally, the creation of trade should take precedence over trade diversion.  A final criticism of THE PTA is that rich countries that take ATPs force small countries to do the same, provide trade blockades and impede progress towards total free trade.  Since the beginning of the 20th century, several hundred bilateral PTAs have been signed. The Canada Research Chair in International Political Economy`s TREND project lists approximately 700 trade agreements, the vast majority of which are bilateral.  A Regional Trade Agreement (RTA) is an example of ALP. In the United States, some industries, such as automakers and electronics manufacturers, favour ATRs because these agreements allow these industries to exploit low production costs in other countries in the hemisphere, while avoiding competition from European and Japanese manufacturers, which they would face in a multilateral agreement.  Free trade associations: in free trade associations, domestic trade must be tariff-free. Examples include the North American Free Trade Agreement and the ASEAN Free Trade Area.
Another controversy around the EPZ is its obvious contradiction with the principles of the World Trade Organization. The WTO is partly governed by a “favoured must nation” mentality, which states that no one should receive preferential treatment in international trade and that tariffs should be the same for all. However, despite this principle, PTAs are authorised by Article XXIV of the WTO CHARTE.  Given the recent proliferation of bilateral TTPs and the emergence of mega-PTAs (broad regional trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP) or the Trans-Pacific Partnership (TPP), a global trading system managed exclusively under the WTO now seems unrealistic and interactions between trade systems must be taken into account. The increasing complexity of the international trading system resulting from the proliferation of EPZs should be taken into account when considering the choice of countries or regions used by countries or regions to promote their trade relations and environmental agendas.  ATPs have grown rapidly; In the 1990s, there were just over 100 PTAs. In 2014, there were more than 700.  These tariff preferences have created many discrepancies with the principle of normal trade relations, namely that members of the World Trade Organization (WTO) should apply the same tariff to imports from other WTO members.  A preferential trade zone (including preferential trade agreements, PTA) is a trading bloc that gives preferential access to certain products from participating countries.