An agreement between two or more countries to remove all restrictions between them on the sales of goods and services, while importing barriers on trade and investment from countries that are not part of it, creates a/an .

FREE TRADE AREA

Explanation:

It is a form of Economic Union in which : Economies agree to increase their economic integration - by reducing or eliminating trade (goods & services) barriers & investment (capital flow) barriers among them.

This free trade within the area benefits economy : by increased competitive efficiency, economies of scale, more choice at lower prices for consumers etc.

Example : North America Free Trade Area NAFTA is an FTA agreement between USA, Mexico, Canada.

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