Free Trade Area

Down on the rough end of the playground, some kids from our class have started charging a dollar to anyone who wants to trade Pokémon cards. And not only would we have to pay a dollar, but we also have to let one person copy our homework and promise to buy at least one Shopkin from Joey’s little sister...and everyone knows Shopkins are so totally lame.

We aren’t about to agree to such draconian terms just to trade our Pokémons, so we decide to form our own playground posse. Anyone who wants to join our club can, as long as they agree to play by our rules: no one-sided trade tariffs, no unfair claims on what others produce, and, for the love of all that is good and kind, no Shopkins.

We call our club PAFTA—Pokémon Aficionados Free Trade Agreement—and all members are instantly a part of our free trade area.

A free trade area is basically the area occupied by two or more entities who engage in mutual, consensual free trade. When NAFTA became a thing (think: PAFTA but replace “Pokemon Aficionados” with “North American”), a free trade area that included the United States, Canada, and Mexico was created. There are free trade areas all over the world, and they don’t necessarily have to occupy contiguous physical space. Like CAFTA-DR (think PAFTA, but replace “Pokémon Aficionados” with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States).