What is a primary goal of trade agreements?

A primary goal of trade agreements is to promote economic competition through free trade. Trade agreements are designed to reduce or eliminate barriers to trade between nations, such as tariffs and import quotas, thereby facilitating an environment where goods and services can move more freely across borders. This increased trade fosters competition, which can lead to greater efficiency, innovation, and lower prices for consumers.

By promoting free trade, countries involved in trade agreements can specialize in the production of goods and services in which they have a comparative advantage, enhancing overall economic productivity. This competition also encourages countries to improve their industries and provides consumers with a wider selection of products at competitive prices.

The other options do not align with the fundamental purpose of trade agreements. Increasing tariffs would act against free trade principles, while encouraging monopoly practices contradicts the aim of fostering competition. Similarly, restricting foreign investment opportunities would limit economic growth and cross-border collaboration, which trade agreements typically seek to enhance.