Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to exporters. Trade Agreements reduce barriers to exports, and protect national interests while enhancing the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for Caribbean companies to export their products and services to trading partner markets.
Free trade agreements can play an important role in supporting global trade liberalisation and are explicitly allowed for under the World Trade Organization (WTO) rules. FTAs can cover entire regions with multiple participants or link just two economies. Under these agreements, parties enter into legally binding commitments to liberalise access to each others' markets for goods and services, and investment. FTAs also typically address a range of other issues such as intellectual property rights, government procurement and competition policy.
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