How do Free Trade Agreements (FTAs) generally affect tariff rates between participating countries?

Free Trade Agreements (FTAs) are designed to facilitate trade between participating countries by creating a more favorable trading environment. One of the primary mechanisms through which FTAs achieve this goal is by reducing or eliminating tariffs on a wide range of goods and services.

When countries enter into a free trade agreement, they typically negotiate terms that involve lowering existing tariff rates or removing tariffs altogether on certain products. This reduction in tariffs helps lower the cost of imports, making it more affordable for consumers and businesses to purchase goods from other participating countries. Consequently, this promotes increased trade volumes, economic cooperation, and competitiveness among the member nations.

Moreover, FTAs can also include provisions that aim to simplify customs procedures and reduce non-tariff barriers, further enhancing trade efficiency. The overall objective is to create a more integrated and smooth trading relationship, fostering economic growth in the partner countries.

Thus, the correct answer reflects the essential purpose of FTAs in promoting free trade by reducing or eliminating tariffs, which can lead to increased economic interaction between the nations involved.