INTERNATIONAL TRADE AGREEMENTS:

Trade agreements are when two or more nations agree on the terms of trade between them. They
determine the tariffs and duties that countries impose on imports and exports. All trade agreements
affect international trade.

LARGEST FREE TRADE AGREEMENTS IN THE WORLD:

Exports, imports and balances are rounded, and totals are listed in US$ millions. Countries are
grouped by agreement: the European Union (EU), the US-Mexico-Canada Agreement (USMCA), the
Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), and
countries with a standalone Free Trade Agreement (FTA) with the US. Hover over each country for
specific breakdowns.

African, Caribbean, and Pacific Group of States (ACP Group)

Established
6 June 1975

Aim
to manage their preferential economic and aid relationship with the EU

Members (77)

Andean Community of Nations (CAN)

Established
26 May 1969; present name established 1 October 1992; effective -16 October 1969

Aim
to promote harmonious development through economic integration

Members (5)
Bolivia, Colombia, Ecuador, Peru, Venezuela

Arab Cooperation Council (ACC)

Established
16 February 1989

Aim
to promote economic cooperation and integration, possibly leading to an Arab Common Market

Members (4)
Egypt, Iraq, Jordan, Yemen; note – the ACC has remained inactive since the Gulf crisis

Asia-Pacific Economic Cooperation (APEC)

Established
7 November 1989

Aim
to promote trade and investment in the Pacific basin

Members (21)
Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico,
NZ, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taiwan, Thailand, US, Vietnam

Black Sea Economic Cooperation Zone (BSEC)

Established
25 June 1992

Aim
to enhance regional stability through economic cooperation

Members (11)
Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, Ukraine

Caribbean Community and Common Market (Caricom)

Established
4 July 1973; effective – 1 August 1973

Aim
to promote economic integration and development, especially among the less developed countries

Members (15)
Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica,
Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad
and Tobago.

European Free Trade Association (EFTA)

Established
4 January 1960; effective – 3 May 1960

Aim
to promote expansion of free trade

Members (4)
Iceland, Liechtenstein, Norway, Switzerland

North American Free Trade Agreement (NAFTA)

Established
17 December 1992
Aim
to eliminate trade barriers, promote fair competition, increase investment opportunities, provide
protection of intellectual property rights, and create procedures to settle disputes

Members (3)
Canada, Mexico, US

Types of Trade Agreements:

There are three types of trade agreements. The first is a unilateral trade agreement. It
occurs when a country imposes trade restrictions and no other country reciprocates.

Bilateral trade agreements are between two countries. Both countries agree to loosen trade
restrictions to expand business opportunities between them. They lower tariffs and confer preferred
trade status with each other. The sticking point usually centres on key protected or subsidized
domestic industries. For most countries, these are in the automotive, oil or food production
industries. The United States has 16 bilateral agreements. The Obama administration was
negotiating the world's largest bilateral agreement.

Multilateral trade agreements are the most difficult to negotiate. These are among three
countries or more. The greater the number of participants, the more difficult the negotiations are.
They are also more complex than bilateral agreements. Each country has its own needs and
requests.

OPERATING AGREEMENTS OF MULTILATERAL:

Andean Community - 1969

ASEAN Free Trade Area (AFTA) - 1992

ASEAN–Australia–New Zealand Free Trade Area (AANZFTA) - 2010[2]

Asia-Pacific Trade Agreement (APTA) - 1975

Central American Integration System (SICA) – 1993

Central European Free Trade Agreement (CEFTA) - 1992[3]

Commonwealth of Independent States Free Trade Area (CISFTA) - 2011[4]

Common Market for Eastern and Southern Africa (COMESA) - 1994

G-3 Free Trade Agreement (G-3) - 1995

Greater Arab Free Trade Area (GAFTA) -1997[5]

Dominican Republic–Central America Free Trade Agreement (DR-CAFTA) – 2004

The Central American-Dominican Republic Free Trade Agreement was signed on August 5, 2004.
CAFTA eliminated tariffs on more than 80 percent of U.S. exports to six countries. These include
Costa Rica, Dominican Republic, Guatemala, Honduras, Nicaragua, and El Salvador. By 2013, it
increased trade by 71 percent or $60 billion.

East African Community (EAC) - 2005

Eurasian Economic Union (EAEU) - 2015

European Economic Area (EEA; European Union–Norway–Iceland–Liechtenstein) - 1994

European Union Customs Union (EUCU; European Union–Turkey–Monaco–San Marino–Andorra) -

1958

European Free Trade Association (EFTA) - 1960

Gulf Cooperation Council (GCC) - 1981

International Grains Agreement - 1995 Comprising a Grains Trade Convention (GTC) and a Food Aid
Convention (FAC)

North American Free Trade Agreement (NAFTA) (Pending replacement by USMCA) - 1994[6]

The largest is the North American Free Trade Agreement which was ratified on January 1,
1994. NAFTA is between the United States, Canada, and Mexico.

Pacific Alliance Free Trade Area (PAFTA) - 2012[7]

South Asian Free Trade Area (SAFTA) - 2004[8]

Southern African Development Community Free Trade Area (SADCFTA) - 1980

Southern Common Market (MERCOSUR) - 1991

World Trade Organization agreements

General Agreement on Tariffs and Trade

The most successful one is the General Agreement on Trade and Tariffs. One hundred fifty-three
countries signed GATT in 1947. Its goal was to reduce tariffs and other trade barriers.

Agreement on Agriculture

Agreement on the Application of Sanitary and Phytosanitary Measures

Agreement on Technical Barriers to Trade

Agreement on Trade Related Investment Measures

Agreement on Anti-Dumping

Agreement on Customs Valuation

Agreement on Reshipment Inspection

European Trade

Agreement on Rules of Origin

Agreement on Import Licensing Procedures

Agreement on Subsidies and Countervailing Measures

Agreement on Safeguards

Arrangement regarding Bovine Meat[1]

International Dairy Agreement

General Agreement on Trade in Services

Agreement on Trade-Related Aspects of Intellectual Property Rights

Agreement on Government Procurement

Information Technology Agreement

Trade Facilitation Agreement

OPERATING AGREEMENTS OF BILATERAL:

ASEAN, CARICOM, China, People's Republic of, Costa Rica, European Free Trade Association,
European Union, Faroe Islands, Georgia, Gulf Cooperation Council, India, Japan, Jordan, Kyrgyz
Republic, Lebanon, Malaysia, Maldives, Marcos, Mexico, Morocco, New Zealand, Panama, Taiwan,
Republic of China, Peru, Serbia, Singapore, South Korea, Switzerland, Thailand, Tunisia, United
States.

TRADE AGREEMENTS OF PAKISTAN:

TRADE & INVESTMENT FRAMEWORK AGREEMENT (TIFA)

BETWEEN PAKISTAN AND USA:
Pakistan and the United States signed a Trade and Investment Framework Agreement (TIFA) in
2003, which provides a forum for discussion of bilateral trade issues. The most recent TIFA
intercessional meeting was held in Islamabad in June 2017.

Recognizing the essential role of private investment both foreign & domestic, growth, pleasant
environment, creating jobs, expanding trade, improving technology & enhancing economic
development.

AFGHANISTAN-PAKISTAN TRANSIT TRADE AGREEMENT,

2010 (APTTA):
Parties agree to facilitate the movement of goods between & through their respective territories &
to provide all facilities in accordance with the provisions of this agreement.

AGREEMENT ON SOUTH ASIAN FREE TRADE AREA

(SAFTA):
The South Asian Association for Regional Cooperation (SAARC) was established on December 8,
1985.The SAARC Charter was adopted by Governments of Bangladesh, Bhutan, India, Maldives,
Nepal,
Pakistan and Sri Lanka with a aim to accelerate the process of economic and social development
in Member States. The Agreement on South Asian Free Trade Area (SAFTA) was signed at Islamabad
during the Twelfth SAARC Summit on 6 January 2004.

PAK-MALAYSIA FREE TRADE AGREEMENTS:

The Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership between Pakistan
and Malaysia was approved by the Cabinet on 6th November, 2007. It was signed on 08-11-2007 at
Kuala Lumpur Malaysia. Lt-Gen (Retd) Tahir Mahmud Qazi, Pakistan’s High Commissioner
to Malaysia, signed the Agreement on behalf of the Government of Pakistan and Her Excellency
Rafidah Aziz, Minister of International Trade & Industry (MITI), Government of Malaysia represented
her government. Mr Shahid Bashir, Joint Secretary and Abdul Qadir Memon, Deputy
Secretary Ministry of Commerce were also present at the time of the signing of the Agreement.

This Agreement is the 1st bilateral FTA between two Muslim Countries – members of OIC. This
Agreement is Pakistan’s first comprehensive FTA incorporating trade in goods, trade in services,
investment and Economic Co-operation and Malaysia’s first bilateral FTA with any south Asian
country.

PAK-CHINA FREE TRADE AGREEMENT IN GOODS &

INVESTMENT:
Chinese President Hu Jintao and his Pakistani counterpart Pervez Musharraf Friday oversaw the
signing of a free trade agreement between the two allies here in Islamabad on 24th November,
2006. The document was signed by the Commerce Ministers of both the countries.

The architecture of the bilateral Free Trade Agreement includes Trade in Goods and Investments in
the first Phase and the leaders of both the countries have decided to negotiate on Trade in Services
during 2007 to enlarge the coverage of the Free Trade Agreement.

The Early Harvest Programme between the two countries which was put into operation on 1st
January 2006, has been merged into this bilateral FTA. In the overall package Pakistan will get
market access at zero duty on industrial alcohol, cotton fabrics, bed-linen and other home textiles,
marble and other tiles, leather articles, sports goods, mangoes, citrus fruit and other fruits and
vegetables; iron and steel products and engineering goods. China will also reduce its tariff by 50% on
fish, dairy sectors; frozen orange juice; plastic products; rubber products; leather products; knitwear;
woven garments etc.

Pakistan has given market access to China mainly on machinery; organic; and inorganic chemicals,
fruits & vegetables, medicaments and other raw materials for various industries including
engineering sector, intermediary goods for engineering sector etc.

PAK-SRILANKA FREE TRADE AGREEMENT:

Free Trade Agreement (FTA) between Pakistan and Sri Lanka is operational from June 12, 2005.
Under the Free Trade Agreement, Sri Lanka and Pakistan have agreed to offer preferential market
access to each others’ exports by way of granting tariff concessions. Sri Lanka would be able to enjoy
duty free market access on 206 products in the Pakistani market including tea, rubber and coconut.
Pakistan, in return, would gain duty free access on 102 products in the Sri Lankan market. These
products include oranges, basmati rice and engineering goods.
PAK-IRAN PREFERENTIAL TRADE AGREEMENT:
Pakistan signed a Preferential Trade Agreement with Islamic Republic of Iran on 4th March 2004. The
Cabinet ratified the agreement on 25th May 2005. As mutually agreed the agreement has become
operational from 1st September 2006.

2. Under the Agreement, Pakistan offered concessions to Iran on 338 tariff lines, whereas Iran gave
concessions on 309 tariff lines. Preferences granted by both countries to each other cover
approximately 18% of MFN tariff of both countries.

PAK-MAURITIUS PREFERENTIAL TRADE AGREEMENT:

Pakistan signed Preferential Trade Agreement with Republic of Mauritius on 30th July 2007 at Port
Louis Mauritius. The Cabinet ratified the agreement on 30th October 2007. As mutually agreed the
agreement has become operational since 30th November 2007. 2. Under the Agreement, Pakistan
offered concessions to Mauritius on 130 items / tariff lines i.e. 1.9% of its total existing national tariff
lines, whereas Mauritius has given concession on 102 items / tariff lines i.e. 1.64% of its total existing
national tariff lines PAK-Mauritius Preferential Trade Agreement (PTA)

PAK-INDONESIA PREFERENTIAL TRADE AGREEMENT:

CEP Comprehensive Economic Partnership signed in Islamabad on 24th November, 2005.
Desiring to promote further cultural operation & developing exchange of information.