noun
free trade zone; free trade area
Economic term for a designated area where goods can be traded without tariffs or other trade barriers.
この自由貿易地域では関税が免除される。
Tariffs are exempted in this free trade zone.
自由貿易協定 is a free trade agreement (FTA), a treaty between countries, while 自由貿易地域 is a physical or designated area where free trade rules apply.
Compound of 自由 (free) + 貿易 (trade) + 地域 (area, zone). A direct translation of the English term 'free trade zone'.