preferential trade agreements

Preferential trade agreements are arrangements between countries that reduce tariffs and trade barriers on certain goods or services, making it easier and cheaper for them to trade with each other. These agreements aim to promote economic cooperation, increase exports and imports, and boost mutual economic growth. They typically involve specific benefits for the participating countries rather than full free trade, allowing each country to maintain some protection for certain industries. In essence, preferential trade agreements create a more favorable trading environment between member nations, encouraging deeper economic ties while still allowing for some degree of national regulation.