A trade agreement is an agreement between two or more countries to reduce barriers to trade.Group of answer choicesTrueFalse

Answer

The statement is True.

A trade agreement is indeed a formal arrangement between two or more countries to promote trade and economic cooperation by reducing or eliminating barriers to trade, such as tariffs, quotas, and regulations.

By entering into a trade agreement, countries aim to create a more favorable trading environment, which can lead to increased trade volumes, higher economic growth, and stronger diplomatic relationships. Such agreements can take various forms, including bilateral agreements between two countries or multilateral agreements involving multiple nations.

Trade agreements can cover a wide range of areas, including goods and services, investment, intellectual property rights, labor standards, and environmental protections. By lowering trade barriers, countries are able to specialize in the production of goods and services they are most efficient at, thereby benefiting all parties involved.