The Preferential Trade Agreement (PTA) or Etusijajärjestely kauppasopimus in Finnish is an agreement between countries to reduce tariffs or other trade barriers on selected products traded between them. PTAs are also known as regional trade agreements since they involve a limited number of countries within a geographic region. PTAs are established with the objective of promoting trade among member countries and improving their economic relations.

The PTA is a kind of free trade agreement that provides preferential treatment to certain products from specific countries. It is designed to benefit the participating countries by expanding trade and enhancing their competitiveness. The agreement enables countries to trade products within the PTA member countries with lower tariffs than those imposed on products from countries that are not part of the agreement. The PTA aims to remove trade barriers and increase trade volumes, which in turn strengthens economic ties between countries.

The PTA is beneficial for developing countries as it helps to increase their exports and allows the countries to compete in international markets. It also provides an opportunity for the participating countries to benefit from each other`s resources, which can lead to an increase in productivity and economic prosperity. The agreement helps developing countries integrate into the global economy and improve their economic welfare.

In addition to promoting international trade, the PTA agreement also establishes a framework for cooperation between member countries in areas such as investment, intellectual property rights, and technical regulations. The agreement helps to create a stable and predictable trade environment, which is essential for businesses to operate effectively.

PTA agreements are typically negotiated between countries that have complementary economies and trade interests. For example, the European Union (EU) has established several PTAs with countries in Latin America, Africa, and Asia. These agreements provide the EU with access to new markets and products while also benefiting the participating countries.

In conclusion, the Preferential Trade Agreement (PTA) or Etusijajärjestely kauppasopimus is an important tool for promoting international trade and economic cooperation. The agreement aims to reduce trade barriers and increase trade volumes between participating countries. Developing countries, in particular, can benefit significantly from the PTA as it provides them with an opportunity to increase exports, integrate into the global economy, and improve economic welfare. The PTA is an essential component of the global trade system and helps to create a more stable and predictable trade environment.