Free trade area has increasingly become an important means for countries around the world to cooperate and compete. On the basis of combing the research results related to the economic effects and measurement evaluation of free trade area, the feasibility of establishing China-Russia-Mongolia Free Trade Area is analyzed from the perspectives of foreign trade dependence, trade integration, and industrial competitiveness and complementarity. Trade creation effect and trade diversion effect are also analyzed when the China-Russia-Mongolia Free Trade Area tariffs are completely abolished. The GTAP model is used to further simulate and calculate the impact of the reduction of different tariff and non-tariff barriers under the establishment of a free trade area on the economic and trade of the three countries. Tariff, non-tariff, system, infrastructure, port trade and cultural exchanges measures and Chinese primary products, manufacturing and service industries are proposed based on it.