Trade pact

Trade pact,

Definition of Trade pact:

  1. An agreement between countries that seeks to increase the level of free trade. This is done by creating special tax, tariff and trade regulations that can reduce barriers. A trade pact can also come with a guarantee of an investment in one country by another, such as foreign direct investment. It is a form of economic integration. See also Trade and Investment Framework Agreement (TIFA), bilateral investment treaty, Preferential Trade Agreement (PTA), free trade area, customs union, common market, currency union, economic and monetary union.

Meaning of Trade pact & Trade pact Definition