Trade agreements make it easier for firms to sell goods and services across borders. They also set rules for how countries protect intellectual property and direct investment. And they provide dispute settlement through the World Trade Organization.

But critics point to them as a major source of job outsourcing and other economic problems. They say that they don’t fully address all of the benefits and costs, and that they are a form of protectionism. But the thousands of pages of trade agreements that have been negotiated and signed over the last few decades have helped shift the world toward freer markets and reduced corporate demands for government favors.

There are 375 Regional Trade Agreements (RTAs) in force, and more in negotiation. These include FTAs, PTAs, customs unions and common markets.

A key element of a trade agreement is reciprocity. Country A must lower barriers to imports from Country B in exchange for getting the same treatment. Otherwise, there is no incentive for either country to sign the agreement.

While there are benefits to lowering trade barriers, the resulting arrangements can sometimes reinforce mercantilist views of trade, with exports a benefit and imports a “concession.” For example, a country may require that all components of a product come from the country to qualify for preferential tariff rates—a protectionist tool to ensure that most auto manufacturing takes place in its own country. In addition, certain trade agreements can be more restrictive than the WTO’s global trade rules.