What is the primary purpose of trade agreements?

The primary purpose of trade agreements is to facilitate and regulate international trade. These agreements are designed to create a framework for trading relationships between countries, which can include reducing or eliminating tariffs, creating common standards, and establishing rules that govern the exchange of goods and services. By simplifying trade, these agreements aim to promote economic cooperation and enhance the flow of trade, ultimately contributing to economic growth and stability among the countries involved.

Trade agreements help to remove barriers that may hinder trade, such as high tariffs or conflicting regulations, thereby fostering a more predictable and favorable trading environment. Additionally, they can provide protections for intellectual property, ensure fair competition, and address other trade-related issues, which further supports the underlying goal of promoting international commerce.