A trade agreement (also known as a trade pact) is a large-scale fiscal, customs and trade agreement, which often contains investment guarantees. There are two or more countries that agree on terms that help them trade with each other. The most common trade agreements are the types of preferences and free trade concluded to reduce (or eliminate) tariffs, quotas and other trade restrictions for goods traded between signatories. Regional trade agreements are very difficult to set up and engage when countries are more diverse. However, the WTO has raised some concerns. According to Pascal Lamy, Director-General of the WTO, the dissemination of regional trade agreements (SAAs) is “. is the breeding of worry – concern about inconsistency, confusion, exponentially rising costs for businesses, unpredictability and even injustice in business relations. “ The WTO is of the view that typical trade agreements (which the WTO describes as preferential or regional) are, to some extent, useful, but that it is much more advantageous to focus on global agreements within the WTO framework, such as the negotiations in the current Doha Round. Association of Southeast Asian Nations (ASEAN) was created in 1967 between Indonesia, Malaysia, the Philippines, Singapore and Thailand, which is why they were able to make political and economic incentives and help them maintain regional stability.  Regional trade agreements vary according to the level of commitment and agreement between Member States.
Regional trade agreements refer to a treaty signed by two or more countries to promote the free movement of goods and services across the borders of its members. Agreement with internal rules that Member States comply with each other. As regards relations with third countries, there are external rules with which members comply. Many theories in the field of international trade suggest that regional trade agreements (RTAs) benefit the nation, as they help increase the volume of trade of a given economy or region. The counter-argument is that SAAs harm the nation. In particular, the regional trade that arises is freer between the countries of the group, without there being any obstacles to trade with the outside world. Many economists have committed themselves, on the basis of empirical analyses, to both for and against ATRs. Adam Smith, considered an advocate of international trade theory, argues that free trade between nations is poised to flourish the nation`s wealth. The quantum of the Regional Trade Agreement (RTA) continues to grow in any part of the world. Regional trade agreements (SAAs) now cover more than half of international trade and coincide with global multilateral agreements within the framework of the World Trade Organization (WTO). In recent years, many countries have actively attempted to establish new bilateral and regional — and often more modern and advanced — trade agreements aimed at increasing trade and stimulating economic growth. The current dissemination of SPAs partly reflects the need for deeper integration than has been achieved through older multilateral agreements.
The preferential agreement requires the least commitment to the removal of barriers to trade Trade barriers are legal measures that are put in place primarily to protect a country`s national economy. They usually reduce the amount of goods and services that can be imported. Such barriers to trade take the form of customs duties or taxes, although Member States do not remove barriers between them. In addition, preferential trade zones have no common barriers to foreign trade. The common market focuses on economic convergence and the creation of an integrated internal market. ASEAN and MERCOSUR are the example of the common market. . . .