[Answer] Why do countries most often create trade agreements?

Answer: to reduce tariffs

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Why do countries most often create trade agreements? A trade agreement (also known as trade pact) is a wide-ranging taxes tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. 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. Trade can be a key factor in economic development.The prudent use of trade can boost a country's development and create absolute gains for the trading partners involved. Trade has been touted as an important tool in the path to development by prominent economists. Trade agreement - Wikipedia Free trade - Wikipedia Trade and development - Wikipedia Trade in the East African Community - Wikipedia Regionalism or Regional Trade Agreements (RTA) are trade policies and agreements that are crafted by the nations in a region for the purposes of increasing international trade in the area. RTAs have been described by supporters as a means of increasing free trade with the goal of eventually merging into larger eith...

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