A trade agreement is a treaty between countries that governs the terms of trade between them — reducing or eliminating tariffs, quotas, and other barriers. Trade agreements range from bilateral deals to global WTO rules.
Defining Trade Agreements A trade agreement is a formal treaty between two or more countries that establishes the rules governing their trade relationship — including tariff rates, quota levels, standards recognition, and dispute resolution mechanisms. Trade agreements are the primary mechanism through which countries liberalize trade and create preferential access for their goods and services in partner markets. Types of Trade Agreements 1. Bilateral Trade Agreements A bilateral agreement invol