An agreement between different countries to smoothen economic activity between them.

The agreement you are referring to is commonly known as a "Free Trade Agreement" (FTA). Free Trade Agreements are treaties between two or more countries that aim to reduce or eliminate trade barriers such as tariffs, import quotas, and taxes. By implementing FTAs, countries can facilitate trade and encourage economic cooperation, leading to increased market access and competitiveness.

FTAs can also promote investment by providing investors with a more predictable environment and can address issues like intellectual property rights and disputes. Through these agreements, countries seek to create a more integrated economic landscape that benefits businesses and consumers alike, contributing to overall economic growth. Examples of such agreements include the North American Free Trade Agreement (NAFTA), now replaced by the United States-Mexico-Canada Agreement (USMCA), and the European Union's single market policies.