ABSTRACT
This chapter reviews four types of methods or agreements used to increase the free flow of goods, services, and investments between countries. These trade and investment enhancing agreements are reviewed in order of their bindingness and scope: free trade agreements (FTAs), bilateral investment treaties (BITs), Cooperation Agreements, and free or foreign trade zones (FTZs). FTAs are exceptions to the World Trade Organizations (WTOs) most-favored and national treatment principles in that two or more countries may enter into an FTA to provide lower tariff rates to each other than the normal WTO rates. BITs have been a longstanding method whereby two countries provide assurances to one another's citizens, companies, and investors doing business in each other's country. Cooperation Agreements are opening statements of cooperation between two countries that do not have a tradition of trade between them. FTZs provide the advantages of entering within an area of the country of import without formally passing through customs.
