Infographic: Which Countries Have the Most Trade Agreements? (2024)

FAQs

Which countries have the most trade agreements? ›

Free Trade

After its exit from the EU, the UK still has 35 trade agreements to its name, the highest after the EU countries. Next up were Iceland and Switzerland with 32 agreements, Norway with 31 and Liechtenstein and Chile with 30 trade deals.

The World Trade Organization (WTO) Agreements create an international trade legal framework for 164 economies around the world. These Agreements cover goods, services, intellectual property, standards, investment and other issues that impact the flow of trade.

Countries that form most trade groups are from the same area of the globe because the distance that goods and services are required to travel from one part to another is short.

The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.

China. As per the world import export data, China is the world's largest trading nation, with a total import-export value of $4.6 trillion in 2020.

The United States is party to 14 Comprehensive Free Trade Agreements with 20 countries and one Trade Agreement with one country.

The world's largest free trade pact, the Regional Comprehensive Economic Partnership (RCEP), could help export-reliant Asian companies and may be good diplomacy, experts say.

The WTO oversees four international trade agreements: the GATT, the General Agreement on Trade in Services (GATS), and agreements on trade-related intellectual property rights and trade-related investment (TRIPS and TRIMS, respectively).

#1 Singapore

Read More About SingaporeSingapore's economic freedom score is 83.9, making its economy the world's freest in the 2023 Index. Its score is about the same as last year.

Why do countries have trade agreements? ›

FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.

A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics.

The United States has comprehensive free trade agreements in force with 20 countries. These are: Australia. Bahrain.

In January 2022, the Regional Comprehensive Economic Partnership (RCEP) came into force, making East Asia home to the world's biggest free trade agreement.

The U.S. trade with China is part of a complex economic relationship. In 1979 the U.S. and China reestablished diplomatic relations and signed a bilateral trade agreement. This gave a start to a rapid growth of trade between the two nations: from $4 billion (exports and imports) that year to over $600 billion in 2017.

NAFTA is now the largest free trade agreement in the world, although it's set to be replaced by the United States-Mexico-Canada Agreement.

The United States has several free trade agreements. These include comprehensive free trade agreements in effect with 20 countries. These free trade agreements build on the foundation of the WTO Agreement, with more comprehensive and stronger disciplines than the WTO Agreement.

What are the 4 types of trade agreements? ›

China maintains 17 Free Trade Agreements (FTAs) with its trade and investment partners and is negotiating or implementing an additional eight FTAs.

The first free trade agreement, the Cobden-Chevalier Treaty, was put in place in 1860 between Britain and France which led to successive agreements between other countries in Europe.

RCEP is the world's largest free trade agreement (FTA), encompassing 15 countries that account for 31 percent of global GDP. RCEP members are also required to phase out tariffs on signatories' goods, but the requirements are not as comprehensive as under the CPTPP.

The North American Free Trade Agreement (NAFTA), which was enacted in 1994 and created a free trade zone for Mexico, Canada, and the United States, is the most important feature in the U.S.-Mexico bilateral commercial relationship.

The U.S. preferential agreement that has had far and away the greatest impact on trade and the U.S. economy is NAFTA.

The AfCFTA provides a platform to achieve that.

Trade openness - Country rankings

The average for 2018 based on 174 countries was 92.11 percent. The highest value was in Hong Kong: 376.89 percent and the lowest value was in Sudan: 1.3 percent. The indicator is available from 1960 to 2021.

Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), the European Union (EU) and Asia-Pacific Economic Cooperation (APEC).

What is one of the main reasons that most countries support free trade agreements? ›

Allows consumers to access the cheapest goods on the world market. Allows countries with relatively cheap labor or resources to benefit from foreign exports.

Example #1

One of the most prominent FTAs is the North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the United States. The pact was signed in 1992 and came into force in 1994. It is an example of a trilateral FTA. To date, it has eliminated many barriers and tariffs between the three countries.

They aim to liberalize trade between a group of nations by reducing or eliminating tariffs, import quotas, and other trade restrictions. An example of a multilateral FTA is the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico.

The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses.

Consumers benefit from lower prices.

Free trade reduces the price of imported goods. This enables consumers to enjoy increased living standards. After the purchase of imports, they have more left over income to spend on other goods. Free trade can also lead to increased competition.

North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan.

trade agreement, any contractual arrangement between states concerning their trade relationships. Trade agreements may be bilateral or multilateral—that is, between two states or more than two states. international trade.

U.S. Free Trade Agreement (FTA) partner countries provide greater market access through reduced or eliminated tariffs, intellectual property protection, and elimination of non-tariff barriers among other provisions.

Based on data from the World Bank, Switzerland, Singapore, and Hong Kong are among those that impose no tariffs on imported products and materials.

What are agreements between two or more countries? ›

International agreements are formal understandings or commitments between two or more countries. An agreement between two countries is called “bilateral,” while an agreement between several countries is “multilateral.” The countries bound by an international agreement are generally referred to as “States Parties.”

NAFTA or North American Free Trade Agreement: NAFTA is the world's largest free trade area.

The WTO. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

NAFTA is now the largest free trade agreement in the world, although it's set to be replaced by the United States-Mexico-Canada Agreement.

The WTO oversees four international trade agreements: the GATT, the General Agreement on Trade in Services (GATS), and agreements on trade-related intellectual property rights and trade-related investment (TRIPS and TRIMS, respectively).

The most recent exports are led by Refined Petroleum ($83.3B), Petroleum Gas ($70.9B), Crude Petroleum ($67.6B), Cars ($55.4B), and Integrated Circuits ($51.3B). The most common destination for the exports of United States are Canada ($259B), Mexico ($247B), China ($151B), Japan ($71.8B), and South Korea ($66.4B).

The United States is an original member of the WTO and a steadfast supporter of the rules-based multilateral trading system that it governs. Working through the WTO, the United States is able to protect and advance the economic interests of American businesses and workers while opening foreign markets.

The three most relevant agreements are: the World Trade Organization (WTO) General Agreement on Trade in Services (GATS) the North American Free Trade Agreement (NAFTA) the Canada-European Union Comprehensive Economic and Trade Agreement (CETA)