Treaties and Agreements
Concepts
Bilateral or multilateral agreement between states that seeks to harmonize the interests between parties and increase commercial exchange.
Types of agreements are:
- Free Trade Treaty or Agreement:
A Free Trade Agreement (FTA) is a regional or bilateral commercial pact aimed at broadening the market for goods and services among participating nations. It entails significantly reducing or eliminating tariffs on goods between parties, along with agreements concerning services. These accords are governed by the World Trade Organization (WTO) or mutual consensus between nations.
- Partial Scope Trade Agreements:
These agreements represent the most rudimentary form of bilateral tariff agreements, focusing on partially liberating trade for specific commodities. They are often viewed as an initial step towards achieving a more comprehensive and open exchange over the long term.
- Trade Promotion Agreement (TPA):
TPA is a global accord fostering free trade. It facilitates substantial tariff-free commerce of goods and services, including financial services. Functionally, TPAs are indistinguishable from FTAs.
Source: Organization of American States. Trade Agreements. Retrieved from http://www.sice.oas.org/countries_e.asp