Trading blocs and free trade agreements appear to be fairly similar in some aspects, although there is a key, yet simple difference between the two:
- Free trade agreements are created to lower trade barriers and to stimulate trade between member countries. Member countries belonging to the free-trade area trade freely with each other while maintaining trade barriers and tariffs for non-member countries.
- Trading blocs are groups of countries that have reached a common agreement to lower trade barriers throughout the group (e.g., NAFTA, ASEAN, and the European Union).
Additionally, you may cover trading blocs as part of your tertiary studies, should you wish to study a business/commerce or related degree after completing your HSC.
I hope this helps!
