680:
854:
2457:
53:
2467:
1319:
by the WTO. According to WTO rules, these agreements are subject to certain requirements such as notification to the WTO and general reciprocity (the preferences should apply equally to each of the signatories of the agreement) where unilateral preferences (some of the signatories gain preferential
802:
or an informal group of countries (or other customs territories). Both countries loosen their trade restrictions to help businesses, so that they can prosper better between the different countries. This definitely helps lower taxes and it helps them converse about their trade status. Usually, this
730:
The logic of formal trade agreements is that they outline what is agreed upon and specify the punishments for deviation from the rules set in the agreement. Trade agreements therefore make misunderstandings less likely, and create confidence on both sides that cheating will be punished; this
1331:(RTA), despite not necessarily concluded by countries within a certain region. There are currently 205 agreements in force as of July 2007. Over 300 have been reported to the WTO. The number of FTA has increased significantly over the last decade. Between 1948 and 1994, the
810:. These face the most obstacles- when negotiating substance, and for implementation. The more countries that are involved, the harder it is to reach mutual satisfaction. Once this type of trade agreement is settled on, it becomes a very powerful agreement. The larger the
742:
Trade pacts are frequently politically contentious, as they might pit the winners and losers of an agreement against each other. Aside from their provisions on reducing tariffs, contentious issues in modern free trade agreements may revolve around
838:(EAEU) was established in 2015 and currently consists of five member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. It is designed to foster economic integration among its member states and promote economic growth in the region.
845:(ASEAN) was formed in 1967 between the countries of Indonesia, Malaysia, the Philippines, Singapore, and Thailand. It was established to promote political partnership and maintain economic stability throughout the region.
823:
These are between countries in a certain area. The most powerful ones include a few countries that are near each other in a geographical area. These countries often have similar histories, demographics and economic goals.
1032:
814:
of the signatories, the greater the impact on other global trade relationships. The largest multilateral trade agreement is the North
American Free Trade Agreement, involving the United States, Canada, and Mexico.
1314:
All agreements concluded outside of the WTO framework (and granting additional benefits beyond the WTO MFN level, but applicable only between the signatories and not to the rest of the WTO members) are called
783:
trade agreement, this is what happens when a country wants certain restrictions to be enforced but no other countries want them to be imposed. This also allows countries to decrease the amount of
735:, can further incentivize cooperation by monitoring compliance with agreements and reporting third countries of the violations. Monitoring by international agencies may be needed to detect
2412:
1284:
1770:
states, without requiring that in return they open their markets to competition from the EU. The WTO waiver already expired and currently the EU and the ACP states are negotiating
2282:
1082:
2274:
2229:
1992:
1024:
2297:
2250:
766:. In response to criticism, free trade agreements have increasingly over time come with measures that seek to reduce the negative externalities of trade liberalization.
2198:
2182:
2362:
2287:
831:(NAFTA) was established on January 1, 1989, between the United States, Canada, and Mexico. This agreement was designed to reduce tariff barriers in North America.
2387:
1767:
1060:
1864:
1028:
747:
on issues such as intellectual property regulations, labour rights, and environmental and safety regulations. Increasing efficiency and economic gains through
1320:
access to the market of the other signatories, without lowering their own tariffs) are allowed only under exceptional circumstances and as temporary measure.
960:
2392:
2177:
1048:
505:
2397:
1008:
968:
2377:
2372:
2352:
2342:
2337:
2260:
1116:
1075:
703:
guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common trade agreements are of the
679:
758:
opposes trade agreements almost by definition, although some groups normally allied within that movement, such as leftist parties, might support
2417:
2292:
2172:
1332:
1052:
842:
2407:
2312:
1937:
1912:
1020:
666:
478:
116:
2432:
2422:
2332:
1311:
basis (MFN), which means that beneficial terms agreed bilaterally with one trading partner will apply also to the rest of the WTO members.
1280:
2347:
2327:
2317:
2307:
2151:
1098:
1068:
929:
828:
2437:
2427:
2322:
1426:
535:
453:
2402:
2357:
2014:
1917:
1857:
1741:
909:
518:
319:
111:
2491:
2382:
1413:
875:
500:
1771:
1141:
establishing a Free Trade Area (FTA)–extensive reduction or elimination of tariffs on substantially all trade allowing for the
1056:
1036:
249:
2496:
2255:
1128:
998:
1729:
1617:
2470:
1665:
1431:
1271:
1243:
221:
618:
2460:
2208:
1850:
1335:(GATT), the predecessor to the WTO, received 124 notifications. Since 1995 over 300 trade agreements have been enacted.
1304:
1040:
994:
736:
490:
485:
171:
2367:
2141:
2019:
1987:
1641:
1228:
1122:
871:
755:
377:
299:
201:
1591:
806:
A trade agreement signed between more than two sides (typically neighboring or in the same region) is classified as
803:
revolves around subsided domestic industries. Mainly the industries fall under automotive, oil, or food industries.
2007:
1216:
956:
540:
372:
314:
304:
236:
588:
1927:
1154:
964:
704:
659:
545:
337:
211:
2002:
1300:
1265:
1171:
1150:
921:
879:
555:
550:
309:
231:
2203:
2091:
913:
835:
633:
86:
2245:
1303:, different agreement types are concluded (mostly during new member accessions), whose terms apply to all
1210:
1142:
990:
972:
944:
811:
608:
560:
410:
2126:
2086:
2044:
1907:
1596:
1398:
1167:
1016:
1012:
583:
578:
465:
395:
226:
2106:
2024:
1557:
1308:
1138:
1102:
858:
652:
603:
281:
276:
2146:
1942:
1892:
1873:
1692:
1436:
1375:
1163:
613:
44:
2224:
1887:
1175:
598:
440:
216:
126:
1296:
Typically the benefits and obligations of the trade agreements apply only to their signatories.
2069:
1737:
1573:
1538:
1493:
1132:
795:
784:
731:
increases the likelihood of long-term cooperation. An international organization, such as the
623:
435:
181:
154:
64:
1997:
1897:
1809:
1784:
1565:
1530:
1472:
1408:
1343:
1044:
986:
628:
593:
191:
81:
2116:
2039:
1902:
1183:
744:
708:
495:
405:
342:
106:
1967:
1763:
1403:
1222:
1192:
1094:
917:
905:
638:
530:
362:
347:
196:
186:
136:
101:
35:
2485:
2102:
2054:
1957:
1932:
1238:
1206:
1159:
982:
939:
861:
around the World (each country colored according to the most integrated multilateral
763:
720:
525:
430:
420:
357:
352:
266:
261:
161:
121:
853:
52:
2097:
1234:
716:
448:
367:
256:
176:
1569:
1947:
1558:"Sweetening the liberalization pill: flanking measures to free trade agreements"
895:
787:. That is also something that does not happen often and could impair a country.
415:
131:
2081:
2077:
2059:
2034:
1922:
1179:
1146:
1106:
862:
799:
759:
748:
700:
425:
271:
96:
1577:
1542:
683:
Types of trading arrangements (arranged by intensity of economic integration)
2029:
1962:
458:
400:
17:
794:, when signed by two parties, where each party may be a country (or other
2156:
1534:
1196:
925:
883:
762:
or safe trade provisions that moderate real and perceived ill effects of
1338:
The WTO is further classifying these agreements in the following types:
1105:
depends on the specific type of trade pacts and policies adopted by the
1093:
There are a variety of trade agreements; with some being quite complex (
2110:
1518:
206:
1842:
1952:
712:
696:
166:
76:
71:
1477:
1464:
1766:
got a WTO waiver to grant favourable access to its market for the
1162:–FTA with significantly reduced or eliminated restrictions on the
1145:
and in more advanced agreements also reduction of restrictions on
852:
779:
There are three different types of trade agreements. The first is
724:
2442:
2302:
1839:, an online database of customs tariffs and market requirements.
1386:–any agreement, including a basic PTA, that covers also services
887:
1846:
1131:(PTA)–limited scope and depth of tariffs reduction between the
1788:
732:
141:
711:
types, which are concluded in order to reduce (or eliminate)
1716:
1556:
Laurens, Noémie; Winkler, Christian; Dupont, Cédric (2024).
51:
1666:"5 Pros and 4 Cons to the World's Largest Trade Agreements"
739:, which are disguised attempts at creating trade barriers.
1834:
1592:"See Why Afghan Rugs Cost You More Today Than a Year Ago"
1213:
of all signatories in respect to non-signatory countries
1519:"Massive Institutional Structures in Global Governance"
1693:"What Trade Agreements Do We Have With Our Neighbors?"
1642:"Fast Facts About the World's Largest Trade Agreement"
2273:
2238:
2230:
Cooperation
Council for the Arab States of the Gulf
2217:
2191:
2165:
2134:
2125:
2068:
1976:
1880:
2251:Economic and Monetary Community of Central Africa
1730:"Why do countries seek Regional Trade Agreements"
1237:–common coordination of substantial parts of the
2199:Customs Union of Belarus, Kazakhstan, and Russia
2183:South Asian Association for Regional Cooperation
1715:Eurasian Economic Union. (2020). Retrieved from
1517:Kim, Rakhyun E.; Morin, Jean-Frédéric (2021).
1858:
1687:
1685:
1076:
660:
8:
695:) is a wide-ranging taxes, tariff and trade
2178:Regional Comprehensive Economic Partnership
27:Wide ranging taxes, tariff and trade treaty
2131:
1865:
1851:
1843:
1083:
1069:
667:
653:
29:
1562:Review of International Political Economy
1476:
1231:(EMU)–Economic union with Currency Union
2261:West African Economic and Monetary Union
1734:The Regionalization of the World Economy
1618:"Top 12 U.S. Bilateral Trade Agreements"
1117:Trade and Investment Framework Agreement
678:
1448:
43:
2173:Association of Southeast Asian Nations
1993:UN Conference on Trade and Development
1333:General Agreement on Tariffs and Trade
843:Association of Southeast Asian Nations
1938:Import substitution industrialization
7:
2466:
2192:Europe, Central Asia, and North Asia
1772:WTO compliant reciprocial agreements
1458:
1456:
1454:
1452:
1281:Multilateral Agreement on Investment
1097:), while others are less intensive (
2152:Central American Integration System
1149:and establishment allowing for the
1099:North American Free Trade Agreement
829:North American Free Trade Agreement
1427:List of international trade topics
1225:–Customs union with Common market
1219:–Customs union with Currency union
25:
2015:International Chamber of Commerce
1918:Export-oriented industrialization
1465:"The Purpose of Trade Agreements"
775:By number and type of signatories
320:International Chamber of Commerce
2465:
2456:
2455:
1492:Surowiecki, James (7 May 2007).
1463:Grossman, Gene M. (March 2016).
1414:Permanent Normal Trade Relations
1292:By the World Trade Organization
1272:agreements in the WTO framework
1242:(proposed step between EMU and
2256:Southern African Customs Union
1384:Economic Integration Agreement
1274:(Textile Agreement and others)
1129:Preferential Trade Arrangement
1:
1570:10.1080/09692290.2024.2337193
1523:Global Environmental Politics
1432:List of free trade agreements
1327:by the WTO are also known as
1244:Complete economic integration
770:Classification of trade pacts
2413:Telecommunications equipment
2218:Middle East and North Africa
2209:European Union Customs Union
1469:NBER Working Paper No. 22070
1353:preferential trade agreement
1323:The trade agreements called
1009:Multilateral free-trade area
396:Intellectual property rights
2142:Andean Community of Nations
2020:Bilateral investment treaty
1988:International Monetary Fund
1785:"Regional trade agreements"
1229:Economic and monetary union
1123:Bilateral Investment Treaty
872:Economic and monetary union
865:that it participates in):
756:anti-globalization movement
378:Economic and monetary union
300:International Monetary Fund
237:Voluntary export restraints
2513:
2008:International Trade Centre
1812:. World Trade Organization
1217:Customs and monetary union
1101:). The resulting level of
957:Customs and monetary union
373:Customs and monetary union
315:World Customs Organization
305:International Trade Centre
2451:
2283:Aircraft & Spacecraft
1928:Foreign exchange reserves
1717:https://www.eaeunion.org/
1155:free movement of services
892:Switzerland–Liechtenstein
792:bilateral trade agreement
727:between the signatories.
338:Preferential trading area
2003:World Trade Organization
1728:Gonzalez, Eddie (1998).
1301:World Trade Organization
1299:In the framework of the
1266:World Trade Organization
1151:free movement of capital
745:regulatory harmonization
619:Balassa–Samuelson effect
614:Ricardian trade theories
501:Largest consumer markets
310:World Trade Organization
2492:International trade law
2204:Eurasian Economic Union
2092:Repeal of the Corn Laws
1357:partial scope agreement
1211:common external tariffs
849:By level of integration
836:Eurasian Economic Union
634:Lerner symmetry theorem
2246:East African Community
2127:Regional organizations
1182:; and coordination in
1143:free movement of goods
1090:
819:By geographical region
684:
609:Gravity model of trade
506:Leading trade partners
411:Government procurement
212:Exchange rate controls
56:
2497:Free trade agreements
2087:The Wealth of Nations
2045:Special economic zone
1908:Comparative advantage
1399:Trade and development
1168:factors of production
856:
790:The second type is a
682:
589:Heckscher–Ohlin model
584:Competitive advantage
579:Comparative advantage
466:Trade and development
227:Countervailing duties
55:
2107:Economic nationalism
2025:Economic integration
1535:10.1162/glep_a_00604
1363:free trade agreement
1139:Free Trade Agreement
1103:economic integration
859:economic integration
699:that often includes
604:Intra-industry trade
332:Economic integration
282:Economic integration
277:Economic nationalism
2363:Integrated circuits
2147:Caribbean Community
1943:Net capital outflow
1893:Balance of payments
1874:International trade
1810:"Facts and figures"
1437:List of trade blocs
1164:freedom of movement
1133:customs territories
737:non-tariff barriers
232:Anti-dumping duties
172:Non-tariff barriers
117:Import substitution
2275:Exports by product
2225:Arab Customs Union
1888:Absolute advantage
1260:Special agreements
1195:–sharing the same
1091:
785:trade restrictions
751:is a common goal.
721:trade restrictions
685:
599:Economic geography
406:Competition policy
202:Technical barriers
182:Tariff-rate quotas
127:Trade facilitation
112:Export orientation
57:
2479:
2478:
2269:
2268:
2239:Subsaharan Africa
2070:Political economy
1836:Market Access Map
1307:on the so-called
796:customs territory
677:
676:
624:Linder hypothesis
436:Emissions trading
16:(Redirected from
2504:
2469:
2468:
2459:
2458:
2132:
1998:World Bank Group
1898:Balance of trade
1867:
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1494:"Exporting I.P."
1489:
1483:
1482:
1480:
1460:
1409:Trade preference
1279:the now defunct
1085:
1078:
1071:
1006:
980:
954:
948:
937:
903:
893:
869:
669:
662:
655:
629:Leontief paradox
594:New trade theory
197:Export subsidies
82:Balance of trade
30:
21:
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2507:
2506:
2505:
2503:
2502:
2501:
2482:
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2393:Pharmaceuticals
2265:
2234:
2213:
2187:
2161:
2121:
2117:Dedollarisation
2064:
2050:Trade agreement
2040:Free-trade zone
1981:
1979:
1972:
1913:Current account
1903:Capital account
1876:
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1499:
1491:
1490:
1486:
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1461:
1450:
1445:
1395:
1294:
1262:
1239:fiscal policies
1184:economic policy
1089:
1064:
1004:
1002:
978:
976:
952:
950:
943:
935:
933:
901:
899:
891:
867:
851:
821:
777:
772:
691:(also known as
689:trade agreement
673:
644:
643:
574:
566:
565:
521:
511:
510:
481:
471:
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441:Trade sanctions
391:
383:
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343:Free-trade area
333:
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252:
242:
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187:Import licenses
157:
147:
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107:Trade diversion
67:
28:
23:
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15:
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11:
5:
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2288:Aircraft parts
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2017:
2012:
2011:
2010:
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1995:
1990:
1984:
1982:
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1968:Trading nation
1965:
1960:
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1900:
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1828:External links
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1742:
1736:. p. 64.
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1497:The New Yorker
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1478:10.3386/w22070
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1404:Trade creation
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1223:Economic union
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1193:Currency union
1190:
1189:
1188:
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1120:
1095:European Union
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906:Economic union
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639:Terms of trade
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2378:Natural gas
2343:Electronics
2338:Electricity
1948:Outsourcing
1881:Terminology
1791:. July 2007
1697:The Balance
1670:The Balance
1646:The Balance
1622:The Balance
1597:The Balance
1502:10 February
1305:WTO members
454:Trade costs
416:Outsourcing
132:Trade route
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2082:Adam Smith
2078:Free trade
2060:Trade bloc
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1923:Fair trade
1816:2009-08-16
1795:2008-07-20
1749:2008-07-21
1702:2018-04-16
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1443:References
1287:framework)
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1180:enterprise
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1107:trade bloc
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800:trade bloc
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