Trade Agreements And The Trade Agreement

1601 Words Nov 29th, 2016 7 Pages
Trade agreements are usually entered to by participating countries in an effort to simplify and encourage the movement of goods and services across borders. The countries entering the agreement often do so in an effort to get favorable conditions for themselves which are likely to boost their gains when trading with other countries and protect their interests. Trade agreements, however, are not all about trade. They often have other elements which are aimed at strengthening the participating countries in all ways. Trade agreements, for example, foster international cooperation. Countries that have come together to form trade unions are to abide by some common rules. The World Trade Organization (WTO), for instance, has a set of rules of which the participating countries are required to follow in an effort to govern relationships. If a country fails to honor them, financial investments are taken out and directed elsewhere which in turn affects the country’s economy. In this regard, countries within a trade agreement work together in other aspects that do not relate to trade in an effort to ensure their stability. International cooperation promotes peaceful co-existence and world peace in general and is a residual element of trade agreements. Trade agreements, apart from encouraging trade among participating countries, also promote good governance and oversight of a country’s activities. A country’s policies are often monitored to ensure that they are implemented in a way…
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