The companies of Limo and Saggi (2013) are exploring the possibility of introducing financial instruments such as bonds or fines against deviations from the cooperative balance. Unlike their previous work (2008), which shows that the use of such financial instruments is not useful for the application of trade agreements between symmetrical countries, the asymmetry between the countries of the bonds has a role to play in strengthening the criminal capacity of small, uncoordinated countries, which helps these countries to maintain either their optimal tariffs at the global level. , their lower and more cooperative tariffs. In other words, the gap between the tariffs of large and small countries is narrowed. The role of depositing bonds against spreads in strengthening the pecuniary strength of small uncoordinated countries stems from the lack of coordination with borrowing, because the decision of each small country to retain the commitment of the large country (which is imposed on each small country) against its departure is the value of bonds held by other small countries , without influence. and deepening interdependence with trading partners. Improving efficiency through “free trade” is a common goal. Most governments support other trade agreements. Although the WTO embodies the principle of non-discrimination in international trade, Article 24 of the GATT authorizes the creation of free trade zones and “customs unions” among WTO members. A free trade area is a group of countries that remove all tariffs on trade with each other, but retain their autonomy in setting their tariffs with non-members. A customs union is a group of countries that remove all tariffs on trade between them, while maintaining a common external tariff for trade with countries outside the EU (which is technically contrary to the MFN). Ensure consistency between negotiations on various agreements, including the interface with multilateral rules.
In total, the United States currently has 14 trade agreements with 20 different countries. In 1995, GATT became the World Trade Organization (WTO), which now has more than 140 member states. The WTO controls four international trade agreements: the GATT, the General Agreement on Trade in Services (GATS) and the Trade-Related Intellectual Property Rights and Trade Investment Agreement (TRIPS and TRIMS).