Essay on Free Trade

There are three types of trade agreements- unilateral, bilateral, and multilateral trade agreements. On this note, various countries have imposed numerous trade restrictions resulting to development of single trade agreements to enhance growth of emerging markets. On the other hand, bilateral trade agreements arise between two nations where both come into an agreement to lessen trade restrictions with the aim of expanding and improving business between them. A multilateral trade agreement occurs when three countries or more go into a contract similar to that of bilateral trade agreement (Amadeo, 2017). There are numerous reasons why a nation would consider joining an economic bloc. There exists a multilateral and regional trade agreement in United States which they attained after negotiating the Central America-Dominican Republic the Free Trade Republic.