Why Are Trade Agreements Beneficial To A Country

In recent decades, the global economy has grown rapidly. This growth is partly due to the even faster increase in international trade. Trade growth, in turn, is the result of both technological change and concerted efforts to reduce barriers to trade. Some developing countries have opened up their own economies to take full advantage of the economic development opportunities offered by trade, but many have not. Other barriers to trade in developed countries are concentrated in agricultural products and labour-intensive manufacturing, where developing countries have a comparative advantage. Further liberalization of trade in those regions, particularly by developed and developing countries, would help the poorest to escape extreme poverty, while benefiting the developed countries themselves. In addition, negotiations are progressing to conclude multilateral free trade agreements, remarkable for their economic scope, the population they cover, and the number of countries in which they are involved, but which are enormous. .