Final answer:
Two countries may sign a treaty to cut taxes as a method to facilitate trade by reducing costs for businesses, in line with efforts by organizations like the WTO to reduce trade barriers globally.
Step-by-step explanation:
Two countries may sign a treaty to create a direct agreement, particularly with the goal of cutting taxes, to promote and facilitate international trade. Tax reduction through treaties serves as an effective means to lower the operational costs for businesses operating across borders. By lowering taxes on trade-related activities, countries aim to incentivize economic cooperation and stimulate cross-border business transactions.
This approach is often part of broader trade agreements where tax reductions complement other measures aimed at decreasing trade barriers. Examples include the World Trade Organization (WTO), which seeks to reduce global trade barriers, and regional agreements like the United States-Canada-Mexico Agreement (USCMA), replacing NAFTA, which aims to further liberalize trade within North America. Such treaties contribute to fostering economic collaboration and creating a conducive environment for international trade.