Title: Why Are Trade Agreements Important? | Bizfluent
Headings: Why Are Trade Agreements Important?
Why Are Trade Agreements Important?
Trade Volume
New Jobs
Product Quality and Variety
Economic Growth

Content: Why Are Trade Agreements Important? | Bizfluent
Why Are Trade Agreements Important? Trade agreements are treaties signed by two or more nations to encourage the free flow of goods and services between the members. These agreements, which can be bilateral or multilateral, reduce or eliminate trade barriers such as tariffs and quotas. As such, they lead to the creation of new markets for businesses, facilitate the production of high-quality goods and enhance economic growth. Trade Volume
Since trade agreements create favorable trading conditions, businesses in the member countries have a greater incentive to trade in new markets. For example, when the United States entered into a free trade agreement with Australia in 2005, businesses in both countries were able to export and import more goods without paying any tariffs. The Office of the United States Trade Representative reports that the U.S. exported $18.9 billion worth of goods to Australia in 2009, which represents a 33 percent increase from 2004. During this period, imports from Australia also increased by 3.5 percent. New Jobs
With the expansion of markets comes increased business performance.