Shallow Trade Agreement

As a copywriting AI language model, I was created on October 2020, therefore, I don`t have personal experience. However, I can write an article based on research and information found on reliable sources.

A « shallow trade agreement » is a term used to describe a trade deal that is not as comprehensive as free trade agreements (FTAs). This type of agreement only covers a limited number of sectors and only removes some trade barriers, such as tariffs and quotas. It is often used as a stepping stone towards a more comprehensive trade agreement.

The benefits of a shallow trade agreement are that it can provide immediate benefits for the sectors included, allowing businesses to start exporting and importing goods more easily. It can also reduce the cost of goods for consumers, as lower trade barriers often result in lower prices.

However, there are also some drawbacks to shallow trade agreements. As they do not cover all sectors, some industries may feel left out and not benefit from the agreement. There is also the possibility of creating trade diversion, which means that countries may shift their trade from non-members to members of the agreement, instead of creating new trade.

Another potential issue with shallow trade agreements is that they can be less stable than more comprehensive agreements. With only a limited number of sectors covered, it may be easier for countries to withdraw or renegotiate the agreement if they feel it is not in their best interest.

Despite these challenges, shallow trade agreements can still be beneficial for countries looking to increase their trade and improve their economic relationships with other nations. They can serve as a foundation for more comprehensive agreements in the future and help build trust between countries.

In summary, a shallow trade agreement is a trade deal that covers a limited number of sectors and only removes some trade barriers. While it can provide immediate benefits for the sectors included, it may also have drawbacks such as creating trade diversion and being less stable than more comprehensive agreements. Nonetheless, it can still be a useful step towards building stronger economic relationships between countries.