Purpose Of Regional Trade Agreements

Regional trade agreements (SAAs) have multiplied and expanded over the years, including a notable increase in the large plurilateral agreements under negotiation. Non-discrimination between trading partners is one of the fundamental principles of the WTO; However, SAAs, which are reciprocal preferential agreements between two or more partners, are one of the exceptions and are allowed under the WTO, subject to a number of rules. Information on SAAs notified to the WTO is available in the RTA database. Regional trade agreements have the following advantages: countries members of a Customs UnionAn agreement between two or more neighbouring countries to eliminate barriers to trade, reduce or eliminate customs duties and eliminate quotas. These trade unions were defined by the General Agreement on Tariffs and Trade (GATT) and constitute the third stage of economic integration. Removal of barriers to trade between them and adoption of common barriers to foreign trade. Companies in the Member States have a greater incentive to trade in new markets, thanks to attractive trading conditions, because of the policy contained in the agreements. Deep trade agreements are an important institutional infrastructure for regional integration. They reduce trade costs and set many of the rules under which economies operate. If made effective, they can improve political cooperation between countries, thereby increasing international trade and investment, economic growth and social welfare. .

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