In many cases, these designations reflect the broader scope of the agreements: many recent free trade agreements go beyond the scope of traditional trade agreements and cover areas such as government procurement, competition, intellectual property, sustainable development, labour and the environment, etc. A preferential trade area (also known as a preferential trade agreement, ATP) is a trading bloc that grants preferential access to certain products of participating countries. This is done by lowering tariffs, but not by abolishing them completely. A PTA can be set by a trade pact. This is the first step in economic integration. The boundary between a PTA and a free trade area (FTA) can become blurred, as almost all PTAs have the primary objective of becoming a free trade agreement under the General Agreement on Tariffs and Trade. .