International trade refers to the exchange of goods and services across national borders. It involves importing and exporting products between countries, enabling nations to obtain resources, goods, or services that may not be available domestically or that can be produced more efficiently elsewhere. International trade allows countries to specialize in the production of certain goods, thereby increasing economic efficiency and consumer choice.
Trade agreements and tariffs can influence international trade dynamics, as countries negotiate the terms that govern how products are traded, the taxes imposed on imports and exports, and rules regarding trade practices. It plays a crucial role in shaping global economies, impacting employment, and fostering economic growth. Additionally, international trade is subject to regulations and policies that countries implement to protect local industries, ensure fair competition, and promote economic stability.
The European Free Trade Association (EFTA), including Iceland, Liechtenstein, Norway, and Switzerland, has established a free trade agreement with Moldova, effective April 1st. The agreement will eliminate tariffs on 98.5%…