Political Economy Of International Trade Questions
The main types of trade agreements are:
1. Bilateral Trade Agreements: These agreements are made between two countries and aim to promote trade and economic cooperation between them. They typically involve the reduction or elimination of tariffs, quotas, and other trade barriers.
2. Multilateral Trade Agreements: These agreements involve multiple countries and are usually negotiated under the auspices of international organizations such as the World Trade Organization (WTO). Examples include the General Agreement on Tariffs and Trade (GATT) and its successor, the WTO.
3. Regional Trade Agreements: These agreements are made between countries within a specific region and aim to promote trade and economic integration within that region. Examples include the North American Free Trade Agreement (NAFTA) and the European Union (EU).
4. Preferential Trade Agreements: These agreements provide preferential treatment to certain countries or groups of countries, granting them more favorable trade conditions compared to non-member countries. They can be bilateral or regional in nature.
5. Free Trade Agreements: These agreements aim to eliminate or significantly reduce trade barriers such as tariffs, quotas, and subsidies between participating countries. They promote the free flow of goods and services across borders and encourage economic integration.
6. Customs Unions: These agreements involve the establishment of a common external tariff among participating countries, while maintaining internal free trade. This means that member countries apply the same tariffs to goods imported from non-member countries.
7. Economic Partnership Agreements: These agreements are specifically designed to promote economic cooperation and development between developed and developing countries. They often include provisions for trade liberalization, development assistance, and capacity building.
It is important to note that these types of trade agreements can overlap or be combined in various ways, depending on the specific goals and circumstances of the countries involved.