669:
843:
2446:
42:
2456:
1308:
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
791:
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
719:
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
1320:(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
799:. 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
731:
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
827:(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.
834:(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.
812:
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.
803:
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.
1303:
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
772:
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
1021:
949:
724:, 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
957:
1759:
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
755:. In response to criticism, free trade agreements have increasingly over time come with measures that seek to reduce the negative externalities of trade liberalization.
2401:
820:(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.
1273:
736:
on issues such as intellectual property regulations, labour rights, and environmental and safety regulations. Increasing efficiency and economic gains through
1309:
access to the market of the other signatories, without lowering their own tariffs) are allowed only under exceptional circumstances and as temporary measure.
2271:
1071:
2263:
2218:
1981:
1013:
2286:
2239:
2187:
2171:
692:
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
2351:
2276:
1260:
747:
opposes trade agreements almost by definition, although some groups normally allied within that movement, such as leftist parties, might support
2376:
1756:
1853:
1049:
1017:
1300:
basis (MFN), which means that beneficial terms agreed bilaterally with one trading partner will apply also to the rest of the WTO members.
2381:
2166:
1037:
1001:
494:
1041:
2386:
997:
2396:
2366:
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2341:
2331:
2326:
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1105:
1064:
602:
2406:
2281:
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1321:
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establishing a Free Trade Area (FTA)–extensive reduction or elimination of tariffs on substantially all trade allowing for the
831:
2301:
1926:
1901:
1009:
655:
467:
105:
1718:
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2140:
1087:
1057:
918:
817:
1324:(GATT), the predecessor to the WTO, received 124 notifications. Since 1995 over 300 trade agreements have been enacted.
2426:
2416:
2311:
1415:
524:
442:
1630:
2391:
2346:
2003:
1906:
1846:
1730:
1580:
898:
668:
507:
308:
100:
795:
A trade agreement signed between more than two sides (typically neighboring or in the same region) is classified as
792:
revolves around subsided domestic industries. Mainly the industries fall under automotive, oil, or food industries.
2480:
2371:
1402:
864:
489:
1760:
1045:
1025:
238:
2485:
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1117:
987:
1420:
1232:
210:
2449:
2197:
1839:
1293:
1029:
983:
725:
607:
479:
474:
160:
1292:, different agreement types are concluded (mostly during new member accessions), whose terms apply to all
2356:
2130:
2008:
1976:
1217:
1111:
860:
744:
366:
288:
190:
1996:
1205:
945:
529:
361:
303:
293:
225:
1916:
1546:
1143:
953:
693:
648:
577:
534:
326:
200:
1991:
1681:
1289:
1254:
1160:
1139:
910:
868:
544:
539:
298:
220:
2192:
2080:
902:
824:
622:
75:
1285:
Typically the benefits and obligations of the trade agreements apply only to their signatories.
2234:
1199:
1131:
979:
961:
933:
800:
597:
549:
399:
1482:
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increases the likelihood of long-term cooperation. An international organization, such as the
2115:
2075:
2033:
1896:
1585:
1387:
1156:
1005:
572:
567:
454:
384:
215:
1798:
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2013:
1297:
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1091:
847:
641:
592:
270:
265:
8:
2135:
1931:
1881:
1862:
1425:
1364:
1152:
33:
2213:
1876:
1164:
587:
429:
205:
115:
2058:
1726:
1562:
1527:
1121:
850:
around the World (each country colored according to the most integrated multilateral
784:
773:
612:
424:
170:
143:
53:
1986:
1886:
1554:
1519:
1461:
1397:
1332:
1033:
975:
617:
582:
180:
70:
1558:
2105:
2028:
1891:
1172:
733:
697:
484:
394:
331:
95:
1547:"Sweetening the liberalization pill: flanking measures to free trade agreements"
776:. That is also something that does not happen often and could impair a country.
2431:
1956:
1752:
1392:
1211:
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1083:
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627:
519:
351:
336:
185:
175:
125:
90:
24:
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2043:
1946:
1921:
1566:
1531:
1227:
1195:
1148:
971:
928:
752:
709:
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Types of trading arrangements (arranged by intensity of economic integration)
514:
419:
409:
346:
341:
255:
250:
150:
110:
2291:
2086:
1223:
783:, when signed by two parties, where each party may be a country (or other
705:
437:
356:
245:
165:
1936:
1523:
884:
751:
or safe trade provisions that moderate real and perceived ill effects of
404:
120:
1327:
The WTO is further classifying these agreements in the following types:
1094:
depends on the specific type of trade pacts and policies adopted by the
1082:
There are a variety of trade agreements; with some being quite complex (
2070:
2066:
2048:
2023:
1911:
1507:
1168:
1135:
1095:
851:
842:
788:
748:
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689:
414:
260:
85:
41:
1831:
2018:
1951:
447:
389:
2145:
1466:
1453:
1185:
914:
872:
1755:
got a WTO waiver to grant favourable access to its market for the
1151:–FTA with significantly reduced or eliminated restrictions on the
1134:
and in more advanced agreements also reduction of restrictions on
768:
There are three different types of trade agreements. The first is
2099:
195:
1828:, an online database of customs tariffs and market requirements.
1375:–any agreement, including a basic PTA, that covers also services
1941:
1120:(PTA)–limited scope and depth of tariffs reduction between the
701:
685:
155:
65:
60:
713:
700:
types, which are concluded in order to reduce (or eliminate)
1705:
1545:
Laurens, Noémie; Winkler, Christian; Dupont, Cédric (2024).
1655:"5 Pros and 4 Cons to the World's Largest Trade Agreements"
876:
728:, which are disguised attempts at creating trade barriers.
1823:
1777:
1581:"See Why Afghan Rugs Cost You More Today Than a Year Ago"
1202:
of all signatories in respect to non-signatory countries
721:
130:
1508:"Massive Institutional Structures in Global Governance"
1682:"What Trade Agreements Do We Have With Our Neighbors?"
1631:"Fast Facts About the World's Largest Trade Agreement"
1791:
1544:
763:
2219:
Cooperation
Council for the Arab States of the Gulf
1280:
2240:Economic and Monetary Community of Central Africa
1719:"Why do countries seek Regional Trade Agreements"
1226:–common coordination of substantial parts of the
2472:
2188:Customs Union of Belarus, Kazakhstan, and Russia
2172:South Asian Association for Regional Cooperation
1704:Eurasian Economic Union. (2020). Retrieved from
758:
1506:Kim, Rakhyun E.; Morin, Jean-Frédéric (2021).
1847:
1676:
1674:
1065:
649:
684:) is a wide-ranging taxes, tariff and trade
2167:Regional Comprehensive Economic Partnership
16:Wide ranging taxes, tariff and trade treaty
1854:
1840:
1671:
1480:
1072:
1058:
837:
656:
642:
1551:Review of International Political Economy
1465:
1220:(EMU)–Economic union with Currency Union
807:
2250:West African Economic and Monetary Union
1723:The Regionalization of the World Economy
1716:
1607:"Top 12 U.S. Bilateral Trade Agreements"
1505:
1451:
1106:Trade and Investment Framework Agreement
841:
667:
1861:
2473:
2162:Association of Southeast Asian Nations
1982:UN Conference on Trade and Development
1322:General Agreement on Tariffs and Trade
832:Association of Southeast Asian Nations
1927:Import substitution industrialization
1835:
1248:
2455:
2181:Europe, Central Asia, and North Asia
1761:WTO compliant reciprocial agreements
1447:
1445:
1443:
1441:
1270:Multilateral Agreement on Investment
1086:), while others are less intensive (
2141:Central American Integration System
1138:and establishment allowing for the
1088:North American Free Trade Agreement
818:North American Free Trade Agreement
13:
1416:List of international trade topics
1214:–Customs union with Common market
1208:–Customs union with Currency union
40:
14:
2497:
2004:International Chamber of Commerce
1907:Export-oriented industrialization
1816:
1474:
1454:"The Purpose of Trade Agreements"
1438:
764:By number and type of signatories
309:International Chamber of Commerce
2454:
2445:
2444:
1481:Surowiecki, James (7 May 2007).
1452:Grossman, Gene M. (March 2016).
1403:Permanent Normal Trade Relations
1766:
1745:
1710:
1698:
1281:By the World Trade Organization
1261:agreements in the WTO framework
1231:(proposed step between EMU and
2245:Southern African Customs Union
1647:
1623:
1599:
1573:
1538:
1499:
1373:Economic Integration Agreement
1263:(Textile Agreement and others)
1118:Preferential Trade Arrangement
1:
1559:10.1080/09692290.2024.2337193
1512:Global Environmental Politics
1431:
1421:List of free trade agreements
1316:by the WTO are also known as
1233:Complete economic integration
759:Classification of trade pacts
2402:Telecommunications equipment
2207:Middle East and North Africa
2198:European Union Customs Union
1458:NBER Working Paper No. 22070
1342:preferential trade agreement
1312:The trade agreements called
998:Multilateral free-trade area
385:Intellectual property rights
7:
2131:Andean Community of Nations
2009:Bilateral investment treaty
1977:International Monetary Fund
1774:"Regional trade agreements"
1381:
1218:Economic and monetary union
1112:Bilateral Investment Treaty
861:Economic and monetary union
854:that it participates in):
745:anti-globalization movement
367:Economic and monetary union
289:International Monetary Fund
226:Voluntary export restraints
10:
2502:
1997:International Trade Centre
1801:. World Trade Organization
1206:Customs and monetary union
1090:). The resulting level of
946:Customs and monetary union
362:Customs and monetary union
304:World Customs Organization
294:International Trade Centre
2440:
2272:Aircraft & Spacecraft
2262:
2227:
2206:
2180:
2154:
2123:
2114:
2057:
1965:
1917:Foreign exchange reserves
1869:
1706:https://www.eaeunion.org/
1144:free movement of services
881:Switzerland–Liechtenstein
781:bilateral trade agreement
716:between the signatories.
327:Preferential trading area
1992:World Trade Organization
1717:Gonzalez, Eddie (1998).
1290:World Trade Organization
1288:In the framework of the
1255:World Trade Organization
1140:free movement of capital
734:regulatory harmonization
608:Balassa–Samuelson effect
603:Ricardian trade theories
490:Largest consumer markets
299:World Trade Organization
2481:International trade law
2193:Eurasian Economic Union
2081:Repeal of the Corn Laws
1346:partial scope agreement
1200:common external tariffs
838:By level of integration
825:Eurasian Economic Union
623:Lerner symmetry theorem
2235:East African Community
2116:Regional organizations
1171:; and coordination in
1132:free movement of goods
1079:
808:By geographical region
673:
598:Gravity model of trade
495:Leading trade partners
400:Government procurement
201:Exchange rate controls
45:
2486:Free trade agreements
2076:The Wealth of Nations
2034:Special economic zone
1897:Comparative advantage
1388:Trade and development
1157:factors of production
845:
779:The second type is a
671:
578:Heckscher–Ohlin model
573:Competitive advantage
568:Comparative advantage
455:Trade and development
216:Countervailing duties
44:
2096:Economic nationalism
2014:Economic integration
1524:10.1162/glep_a_00604
1352:free trade agreement
1128:Free Trade Agreement
1092:economic integration
848:economic integration
688:that often includes
593:Intra-industry trade
321:Economic integration
271:Economic integration
266:Economic nationalism
2352:Integrated circuits
2136:Caribbean Community
1932:Net capital outflow
1882:Balance of payments
1863:International trade
1799:"Facts and figures"
1426:List of trade blocs
1153:freedom of movement
1122:customs territories
726:non-tariff barriers
221:Anti-dumping duties
161:Non-tariff barriers
106:Import substitution
2264:Exports by product
2214:Arab Customs Union
1877:Absolute advantage
1249:Special agreements
1184:–sharing the same
1080:
774:trade restrictions
740:is a common goal.
710:trade restrictions
674:
588:Economic geography
395:Competition policy
191:Technical barriers
171:Tariff-rate quotas
116:Trade facilitation
101:Export orientation
46:
2468:
2467:
2258:
2257:
2228:Subsaharan Africa
2059:Political economy
1825:Market Access Map
1296:on the so-called
785:customs territory
666:
665:
613:Linder hypothesis
425:Emissions trading
2493:
2458:
2457:
2448:
2447:
2121:
2120:
1987:World Bank Group
1887:Balance of trade
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1497:
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1483:"Exporting I.P."
1478:
1472:
1471:
1469:
1449:
1398:Trade preference
1268:the now defunct
1074:
1067:
1060:
995:
969:
943:
937:
926:
892:
882:
858:
658:
651:
644:
618:Leontief paradox
583:New trade theory
186:Export subsidies
71:Balance of trade
19:
18:
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2500:
2496:
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2382:Pharmaceuticals
2254:
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2202:
2176:
2150:
2110:
2106:Dedollarisation
2053:
2039:Trade agreement
2029:Free-trade zone
1970:
1968:
1961:
1902:Current account
1892:Capital account
1865:
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1500:
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1479:
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1450:
1439:
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1384:
1283:
1251:
1228:fiscal policies
1173:economic policy
1078:
1053:
993:
991:
967:
965:
941:
939:
932:
924:
922:
890:
888:
880:
856:
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766:
761:
680:(also known as
678:trade agreement
662:
633:
632:
563:
555:
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510:
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430:Trade sanctions
380:
372:
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332:Free-trade area
322:
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241:
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176:Import licenses
146:
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96:Trade diversion
56:
17:
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5:
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2277:Aircraft parts
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2016:
2011:
2006:
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1989:
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1957:Trading nation
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1817:External links
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1725:. p. 64.
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1486:The New Yorker
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1467:10.3386/w22070
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1212:Economic union
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1182:Currency union
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1109:
1084:European Union
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1780:. July 2007
1686:The Balance
1659:The Balance
1635:The Balance
1611:The Balance
1586:The Balance
1491:10 February
1294:WTO members
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2067:Free trade
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1912:Fair trade
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1738:2008-07-21
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1432:References
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1169:enterprise
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789:trade bloc
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