A trade agreement is a formal arrangement between two or more countries that outlines the rules and regulations for trading goods and services. These agreements aim to reduce barriers such as tariffs and quotas, making it easier and cheaper for countries to exchange products. By promoting trade, countries can benefit from increased economic growth and access to a wider variety of goods. There are different types of trade agreements, including free trade agreements and customs unions. Notable examples include the North American Free Trade Agreement (NAFTA) and the European Union (EU) trade policies. These agreements help foster international cooperation and economic interdependence.