The formation of a free trade zone entails the removal of tariff and non-tariff barriers
as well as several measures adopted at the country level that lends to inefficiencies in free
trade between two countries (Lloyd and Smith, 2004). These barriers may exist in
different sectors both manufacturing (e.g. electronics, apparel) and services (e.g. logistics,
banking). To improve trade friendliness, these sectors need to be individually addressed.
In the case of logistics services, free trade is inhibited mainly due to the regulatory and
non-regulatory barriers that exist across the nations at the borders and not so much due
to tariff and non-tariff barriers (Centre for International Economic Studies (CIES), 2006).