Trade agreements are useful because they allow countries, there are three different types of trade agreements. The first is a unilateral trade agreement[3] This happens when one country wants to impose certain restrictions, but no other country wants them to be imposed. It also allows countries to reduce the number of trade restrictions. It is also something that is not frequent and could affect a country. Trade agreements that the WTO refers to as preferential are also called regional “RTAs”, although they are not necessarily concluded by countries in a given region. As of July 2007, 205 agreements are currently in force. More than 300 have been notified to the WTO. [10] The number of free trade agreements has increased considerably over the past decade. Between 1948 and 1994, the General Agreement on Tariffs and Trade (GATT), the predecessor of the WTO, received 124 notifications. Since 1995, more than 300 trade agreements have been concluded. [11] Association of Southeast Asian Nations (ASEAN) this association was founded in 1967 between Indonesia, Malaysia, the Philippines, Singapore and Thailand, which explains why they could exert political and economic incentives and helps them all maintain regional stability. [7] The second is considered bilateral (BTA) when signed between two parties, each of which may be a country (or other customs territory), a trading bloc or an informal group of countries (or other customs territories).

Both countries are easing trade restrictions to help businesses thrive better between countries. It certainly helps to reduce taxes and helps them discuss their business status. Typically, these are subsidized domestic industries. The logic of formal trade agreements is to define what is agreed and the sanctions applicable to derogations from the rules established in the agreement. [1] Trade agreements therefore make misunderstandings less likely and create confidence on both sides that fraud is punishable; This increases the likelihood of long-term cooperation. [1] An international organization such as the IMF can further encourage cooperation by monitoring compliance with agreements and informing third countries of violations. [1] Monitoring by international agencies may be necessary to detect non-tariff barriers that are disguised attempts to create barriers to trade. .