Trade agreements play a significant role in shaping FTR by establishing the rules and guidelines for trade between signatory countries. These agreements can:
Reduce Tariffs: Lower or eliminate tariffs on certain goods, making trade more cost-effective. Harmonize Standards: Create uniform standards for products, reducing the complexity of compliance. Promote Fair Competition: Ensure a level playing field for businesses by addressing issues like subsidies and dumping. Enhance Market Access: Provide businesses with greater access to foreign markets, expanding their potential customer base.