Trade agreements reduce restrictions that make buying or selling goods and services easier and cheaper. The most common types of trade agreements are free-trade agreements (FTAs) and trade preference programs that lower tariffs, quotas and other import-related rules. These agreements can also cover a wide range of non-tariff barriers that limit trading between countries, including intellectual property rights, investment, and product standards.
Creating the right conditions for global economic growth requires an open, global trading system that protects U.S. interests and provides stability and predictability for businesses. This can’t be accomplished through a series of bilateral deals that isolate U.S. economic interests from the rest of the world. It must also bind nations to the existing WTO rules, which Trump’s approach to trade negotiations does not do.
The WTO’s system of rules and disciplines creates a single legal framework for 164 economies worldwide on goods, services, intellectual property, investment and other issues that impact the flow of trade. This framework supports trillions in international trade and contributes to global prosperity.
The WTO’s original mission was to lower tariff rates for industrial products. Eight rounds of trade talks, the latest of which is the ninth under the Doha Development Agenda, have resulted in a steady decline in those rates. These reductions are a vital element of the global economy, and they have made it possible for consumers to have more choices at a lower cost. They have also paved the way for new kinds of cross-border ecommerce and opened markets in areas such as services, investment and global value chain integration.
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