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There are three different types of trade agreements. The first is a unilateral trade agreement[3] if one country wants certain restrictions to be enforced, but no other country wants them to be imposed. It also allows countries to reduce the amount of trade restrictions. It is also something that is not common and could affect a country. Trade agreements designated by the WTO as preferential agreements are also referred to as regional agreements (RTAs), although they are not necessarily concluded by countries within a given region. Currently, 205 agreements are in effect as of July 2007. More than 300 people have been notified to the WTO. [10] The number of free trade agreements has increased significantly over the past decade. Between 1948 and 1994, the General Agreement on Tariffs and Trade (GATT), predecessor to the WTO, received 124 notifications. Since 1995, more than 300 trade agreements have been concluded. [11] All agreements concluded outside the WTO framework (which provide additional benefits beyond the WTO level but apply only between signatories and not other WTO members) are considered to be preferred by the WTO. Under WTO rules, these agreements are subject to certain requirements, such as WTO notification and general reciprocity (preferences should apply equally to each signatory to the agreement), where unilateral preferences (some of the signatories enjoy preferential market access to the other signatories without reducing their tariffs) are allowed only in exceptional circumstances and as a temporary measure.

[9] The anti-globalization movement is almost by definition opposed to such agreements, but some groups are usually allied within them. B of this movement, for example the Green parties, aspire to fair trade or secure trade rules that moderate the real and perceived negative effects of globalization. A trade agreement (also known as a trade pact) is a large-scale tax, customs and trade agreement, which often includes investment guarantees. It exists when two or more countries agree on conditions that help them trade with each other. The most frequent trade agreements are preferential and free trade regimes to reduce (or remove) tariffs, quotas and other trade restrictions imposed on intermediaries. The Association of South Asian Nations (ASEAN) was established in 1967 between Indonesia, Malaysia, the Philippines, Singapore and Thailand to encourage politics and the economy, and it helps them all to maintain regional stability. [7] Member States benefit from trade agreements, notably in the form of increased employment opportunities, lower unemployment and increased market opportunities. Since trade agreements generally come with investment guarantees, investors who wish to invest in developing countries are protected from political risks. However, the WTO has expressed some concerns. According to Pascal Lamy, Director-General of the WTO, the dissemination of regional trade agreements (RTA) is “… is the concern of inconsistency, confusion, exponentially increasing costs for businesses, unpredictability and even injustice in trade relations. [2] The WTO is how typical trade agreements (called preferential or regional agreements by the WTO) are to some extent useful, but it is much more advantageous to focus on global agreements under the WTO, such as the ongoing Doha Round negotiations. Trade pacts are often politically controversial because they can change economic practices and deepen interdependence with trading partners.

Improving efficiency through “free trade” is a common goal. Most governments support other trade agreements. Trade agreements open many doors. With access to new markets, competition intensifies. Increasing competition is forcing companies to produce better quality products. It also leads to greater diversity for consumers.