The article explores how free trade agreements (FTAs) impact trade between countries. The researchers used two methods: looking at trade patterns before and after FTAs, and using a gravity equation to analyze trade flows. They found that FTAs generally increase trade between countries (trade creation effect) and only slightly divert trade from non-FTA partners (trade diversion effect). Different sectors show varying effects, with some products experiencing trade diversion in certain FTAs like the EU, NAFTA, and MERCOSUR.