Final answer:
A three way match may not be required for transactions under a trading partner agreement due to streamlined processes that facilitate efficient trade, higher levels of trust between parties, and dispute resolution mechanisms provided by agreements like USCMA/NAFTA, EU, TPP, and the WTO.
Step-by-step explanation:
In transactions involving a trading partner agreement, such as those under the USCMA/NAFTA, EU, or TPP, a three way match—which typically involves matching a purchase order, receiving report, and invoice before processing a payment—may not be required. The rationale is that these agreements often include streamlined processes in order to facilitate easier and more efficient trade between member countries. A key purpose of such deals is to reduce bureaucratic hurdles and this simplification can lead to waiving the three way match requirement, trusting in the established relationship and terms outlined within the agreement.
Moreover, companies engaged in transactions under these trade agreements may have a higher level of trust and assurance due to the stringent rules and regulations these agreements impose on member countries. The World Trade Organization (WTO) also provides frameworks for resolving disputes, further reducing the risk typically mitigated by a three way match process. As trading partners operate under the assumption of compliance with these agreements, the need for checks like a three way match is often perceived to be less critical.
With the goal of global free trade and the harmonization of trade practices, the WTO aims to streamline international trade, which includes encouraging trading systems that are less cumbersome. Hence, under a trading partner agreement, if both parties are equally bound by the terms and confident in the mechanisms for dispute resolution provided by the WTO, they might opt to forego the three way match as a cost and time-saving measure.