Trade policies are rules and regulations that countries create to manage how goods and services are exchanged across their borders. These policies can include tariffs, which are taxes on imported goods, and quotas, which limit the amount of a product that can be imported. By setting these rules, governments aim to protect local industries, promote economic growth, and ensure fair competition. Countries often negotiate trade agreements to establish favorable terms for trade with one another. These agreements can help reduce tariffs and eliminate quotas, making it easier for businesses to sell their products internationally. For example, the North American Free Trade Agreement (NAFTA) was designed to enhance trade between the United States, Canada, and Mexico.