A trade agreement is a set of rules that two or more countries agree to regulate their economic interactions with one another. These rules typically focus on lowering government barriers to trade, whether those are imposed at the border or internally through taxes and regulations. Increasingly, trade agreements are negotiated by multiple countries at once, with special attention to developing countries.
In order to join the World Trade Organization (WTO), a country must commit to the principle of most-favoured nation treatment, which states that when a country lowers its barriers to trade it must do so for all WTO members. In addition, it must not discriminate between the different kinds of goods from different members. This is a significant commitment and can take time for some countries to implement. This is why many WTO members negotiate transition periods for developing countries so that they can adapt to these obligations.
Trade agreements also often contain specific provisions for the trade in services, which are based on the General Agreement on Trade in Services. This agreement provides for progressive liberalization of trade in services by all WTO members, including special concessions for least-developed countries and other measures designed to help them access and use the global service markets.