An expanding web of trade agreements is what is governing the world trading system. These agreements subtly determine the conditions and terms of the global markets, their competition, countries, firms, and consumers conduct trade. The agreements establish how partners their goods and services. The trade allows for world globalization, enabling member countries to obtain products from other members effortlessly and conveniently.[1] Trade agreements have existed throughout historical times and left an impact on the member countries.
Trade agreements tie the participating countries in that they adhere to set tariffs, fees, or set barriers as outlined in the agreement. Most of the time, this is advantageous because of the interference by the government and the lifting of restrictions. [2] Non-participating members do not enjoy those advantages, and hence, the more trade agreements a country is tied to, the better for its trade. In addition, the agreements assist member countries to tackle the obstacles they are facing. For example, challenges developing countries are facing in their small and medium enterprises, consumer protection, and provision of financial services, as well as matters related to training activities and research, have been solved through trade agreements.[3] Trade ties have been increasing, and this has boosted global trade with numerous benefits cited by participating members.
Another importance of the number of trade agreements is the fact that they offer trade grants as well as easier access to products and services, which translates to the promotion of faster economic growth for the member countries and, in most cases, permits outsourcing of produced goods. [4]Trade agreements are attributed to developing countries experiencing robust economic growth and their viable gross domestic product. In conclusion, trade agreements and ties between nations save members money and time while contributing positively to their economic growth.
Bibliography
Egger, Peter, Joseph Francois, Miriam Manchin, and Douglas Nelson. 2015. “Non-tariff barriers,
integration and the transatlantic economy.” Economic Policy 30, no. 83: 539-584
Hur, Jung, and Cheolbeom Park. “Do Free Trade Agreements Increase Economic Growth of the
Stevens, William R. Trade and Development: Focus on Free Trade Agreements. New York: Nova Science Publishers, Inc, 2010Member Countries?.” World Development 40, no. 7
(July 2012): 1283-1294
“World Economic Prospects.” Economic Outlook 41, (January 2, 2017): 1-37.
- “World Economic Prospects.” Economic Outlook 41, (January 2, 2017): 1-37. ↑
- Egger, Peter, Joseph Francois, Miriam Manchin, and Douglas Nelson. 2015. “Non-tariff barriers, integration and the transatlantic economy.” Economic Policy 30, no. 83: 539-584 ↑
- Hur, Jung, and Cheolbeom Park. “Do Free Trade Agreements Increase Economic Growth of theStevens, William R. Trade and Development: Focus on Free Trade Agreements. New York: Nova Science Publishers, Inc, 2010Member Countries?.” World Development 40, no. 7Hur, Jung, and Cheolbeom Park. “Do Free Trade Agreements Increase Economic Growth of the
Stevens, William R. Trade and Development: Focus on Free Trade Agreements. New York: Nova Science Publishers, Inc, 2010Member Countries?.” World Development 40, no. 7 ↑
- York: Nova Science Publishers, Inc, 2010Member Countries?.” World Development 40, no. 7 (July 2012): 1283-1294 ↑
