MULTILATERAL TRADE AGREEMENT

Multilateral trade agreements are commerce treaties among three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. They are difficult to negotiate because they are among many nations. Their broad scope makes them more robust than other types of trade agreements once all parties sign. 

Bilateral agreements are easier to negotiate but these are only between two countries. They don't have as big an impact on economic growth as does a multilateral agreement.

Note:

• Multilateral trade agreements strengthen the global economy by making developing countries competitive. 
• They standardize import and export procedures giving economic benefits to all member nations. 
• Their complexity helps those that can take advantage of globalization, while those who cannot often face hardships.

Benefits of Multilateral Trade Agreement:

·        All signatories treat each other equally. No country can give better trade deals to one country than it does to another.

·        It standardizes commerce regulations for all the trade partners.

·        Trade deals can be negotiated with more than one country at a time.

·        Participants enjoy low tariff which makes their export cheaper.

The major downside of Multilateral Trade Agreement they are complex which makes it difficult and time consuming to negotiate.