International Trade Agreement

An International Trade Agreement is a contract between two or more countries that defines the rules of trade between them. These agreements aim to reduce barriers, such as tariffs and quotas, making it easier and cheaper for countries to exchange goods and services. By fostering trade, countries can benefit from access to a wider range of products, compete better in global markets, and strengthen economic ties. Examples include the North American Free Trade Agreement (NAFTA) and the European Union (EU) trade policies, which aim to promote economic cooperation and growth among member nations.