Trade Agreement

A trade agreement, also known as a trade-a pact, is any contractual agreement between states concerning their trade-a relationships. It is a way to reduce barriers, thereby opening all parties to the benefits of increased trade-a, and are often politically contentious since they may change economic customs and deepen interdependence with trade-a partners. A product of negotiations between two or more sovereign nations, these agreements may be bilateral or multilateral, and as soon as the potential for trade-a between two countries is evident, trade-a negotiations usually begin. Some common features of trade agreements include reciprocity, a most-favoured-nation clause, and a national treatment of non tariff barriers.