A trade agreement is a legally binding agreement between two or more countries that establishes rules and conditions for the exchange of goods and services across their borders. It aims to promote economic cooperation, reduce barriers to trade, and protect the interests of all participating countries.
Related terms
Tariff: A tariff is a tax imposed on imported goods or services, which increases their cost and serves as a barrier to free trade.
Free trade: Free trade refers to the unrestricted flow of goods and services between countries without any barriers such as tariffs or quotas.
World Trade Organization (WTO): The WTO is an international organization that deals with global rules of trade between nations. It helps negotiate agreements, resolves disputes, and promotes fair practices in international commerce.