Final answer:
The NAFTA and DR-CAFTA agreements are examples of regional trade agreements, which involve several countries within a geographic area. They aim to facilitate trade by reducing trade barriers and are part of the complex network of global trade regulated in part by the WTO.
Step-by-step explanation:
The NAFTA agreement and the DR-CAFTA agreement are examples of regional trade agreements. These agreements are between multiple countries in a specific region and aim to reduce tariffs, import quotas, and non-tariff barriers to trade.
Unlike bilateral agreements, which are between just two countries, regional trade agreements involve several countries, such as the members of NAFTA which include the United States, Canada, and Mexico. Similarly, DR-CAFTA involves the United States and multiple countries in Central America. These agreements are part of the wider array of trade deals that countries engage in to facilitate easier and more efficient international trade.
The World Trade Organization (WTO) is the global organization that aids in achieving free trade globally and resolving trade disputes. WTO agreements have been signed by the majority of the world's nations. Nevertheless, regional agreements like NAFTA and DR-CAFTA are significant because they can provide more specific benefits to the parties involved and can also lead to what some economists describe as a "spaghetti bowl" of overlapping and complex trade networks.