What is the Meaning of Trade agreement | Definition and What is Trade agreement
An agreement is an agreement between two or more parties. It is the result of a negotiation which is reached when the persons concerned adopt a common position on a particular issue.
Shopping is an adjective used to refer to what belongs or relating to trade or traders (businessmen). Means trade socio-economic activity involving the purchase and sale of goods which may be used as well for resale to processing.
A trade agreement is an agreement or treaty concerning commercial activity. Such agreement may be established by private companies, professional organizations or Governments.
Examples: "the Dutch mattress manufacturer has signed an agreement with the Swiss carrier to make more flexible distribution of their products', 'I think that this trade agreement will bring significant income in the coming months', 'the Government of the Philippines respected the trade agreement established with the neighboring country.
In general, when the agreement is celebrated (signed) between two countries, one often speaks of trade treaty. States agree a pattern of relationships which govern trade between both. Taxes, the base currency, control the borders and jurisdiction accepted by the parties are some of the topics discussed in this type of agreements.
With regard to trade agreements between private companies, their goal is usually to generate synergies to enhance the position of the two on the market. The agreement can be concluded between companies of the same sector (to reduce costs, achieve a foreign market, etc.) or between companies in different sectors.