Question

What term is used to refer to agreements between two countries that aim to facilitate trade and economic cooperation within a specific region, and are commonly known as Regional Trade Agreements (Bi-lateral)?

Answer 1

The term for agreements between two countries aimed at promoting trade within a region is 'bi-lateral agreements.' An example for the U.S. is NAFTA, with other examples including the Caribbean Basin Initiative and a bilateral agreement with Israel. These reduce trade barriers and create a complex network of global trade relationships.

Step-by-step explanation:

The term used to refer to agreements between two countries that aim to facilitate trade and economic cooperation within a specific region, and are commonly known as Regional Trade Agreements (RTAs), is bi-lateral agreements. For the United States, a well-known example is the North American Free Trade Agreement (NAFTA). However, the U.S. is also part of less-prominent RTAs, such as the Caribbean Basin Initiative, which offers reduced tariffs for imports from participating countries, and a free trade agreement with Israel. These agreements play a crucial role in promoting trade by reducing barriers like tariffs, import quotas, and non-tariff barriers. The sheer number of such agreements worldwide has led an economist to metaphorically describe the situation as a “spaghetti bowl”, due to the complex network of interconnected trade relationships.