Trade agreements are formal arrangements between countries that outline the rules for exchanging goods and services. These agreements aim to reduce barriers, such as tariffs and quotas, making it easier and cheaper for countries to trade with one another. By promoting trade, countries can benefit from increased economic growth and access to a wider variety of products. There are different types of trade agreements, including free trade agreements and customs unions. Free trade agreements eliminate tariffs on goods traded between member countries, while customs unions allow for a common external tariff on imports from non-member countries. These agreements help foster international cooperation and economic integration.