Agreements

Trade Agreements: How They Benefit Import and Export Businesses

Trade agreements can help import and export businesses by reducing tariffs, increasing market access, and providing legal certainty. Learn more about how trade agreements can benefit your business.

Introduction

Trade agreements are agreements between two or more countries that reduce or eliminate tariffs and other trade barriers. They can benefit import and export businesses by increasing market access, reducing costs, and providing legal certainty.

What are trade agreements?

There are two main types of trade agreements: free trade agreements (FTAs) and preferential trade agreements (PTAs). FTAs eliminate tariffs and other trade barriers between the countries that are party to the agreement. PTAs reduce tariffs and other trade barriers, but not to the same extent as FTAs.

How do trade agreements benefit import and export businesses?

Trade agreements can benefit import and export businesses in a number of ways. They can:

• Reduce tariffs, which can lower the cost of imported goods and make them more competitive in the domestic market.
• Increase market access, which means that businesses can export their goods to more countries.
• Provide legal certainty, which can help businesses to plan for the future and make informed decisions about their business.

Examples of trade agreements

There are many examples of trade agreements that have benefited import and export businesses. Some of the most well-known examples include:

• The North American Free Trade Agreement (NAFTA), was signed by the United States, Canada, and Mexico in 1994.
• The European Union (EU), is a single market of 27 member countries.
• The Association of Southeast Asian Nations (ASEAN), is a regional bloc of 10 countries.

Conclusion

Trade agreements can be a valuable tool for import and export businesses. By reducing tariffs, increasing market access, and providing legal certainty, trade agreements can help businesses to grow and succeed.