Free Trade Agreement Mfn
5 In 1996, WTO members established the Standing Committee on Regional Trade Agreements (CRTA), which reviews new and existing free trade agreements and examines the overall impact of such agreements on the global trading system.6 This is the WTO`s legal basis for the Generalised System of Preferences (GSP).  Free trade agreements and preferential trade regimes (as indicated by the WTO) are considered to be most-favoured-nation derogations.  Unlike a customs union, parties to a free trade agreement do not have common external tariffs, which means that they apply different tariffs and other policies towards non-members. .