What happens when two countries decide to sign a free- trade agreement?

When two countries sign a free trade agreement, they typically agree to reduce or eliminate tariffs and other trade barriers on goods and services exchanged between them. This fosters increased trade and economic cooperation, allowing businesses to benefit from larger markets and consumers to enjoy a wider variety of products at lower prices. Additionally, such agreements often include provisions related to investment, intellectual property, and labor standards, aiming to create a more conducive environment for economic growth and collaboration. However, they can also lead to challenges, such as potential job losses in certain sectors due to increased competition.