Trade agreements in the context of "Isolationist"

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⭐ Core Definition: Trade agreements

A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.

The logic of formal trade agreements is that they outline what is agreed upon and specify the punishments for deviation from the rules set in the agreement. Trade agreements therefore make misunderstandings less likely, and create confidence on both sides that cheating will be punished; this increases the likelihood of long-term cooperation. An international organization, such as the IMF, can further incentivize cooperation by monitoring compliance with agreements and reporting third countries of the violations. Monitoring by international agencies may be needed to detect non-tariff barriers, which are disguised attempts at creating trade barriers.

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Trade agreements in the context of Isolationism

Isolationism is a term used to refer to a political philosophy advocating a foreign policy that opposes involvement in the political affairs, and especially the wars, of other countries. Thus, isolationism fundamentally advocates neutrality and opposes entanglement in military alliances and mutual defense pacts. In its purest form, isolationism opposes all commitments to foreign countries, including treaties and trade agreements. In the political science lexicon, there is also the term of "non-interventionism", which is sometimes improperly used to replace the concept of "isolationism". "Non-interventionism" is commonly understood as "a foreign policy of political or military non-involvement in foreign relations or in other countries' internal affairs". "Isolationism" should be interpreted more broadly as "a foreign policy grand strategy of military and political non-interference in international affairs and in the internal affairs of sovereign states, associated with trade and economic protectionism and cultural and religious isolation, as well as with the inability to be in permanent military alliances, with the preservation, however, some opportunities to participate in temporary military alliances that meet the current interests of the state and in permanent international organizations of a non-military nature."

This contrasts with philosophies such as colonialism, expansionism, and liberal internationalism.

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Trade agreements in the context of Anti-globalisation

The anti-globalization movement, or counter-globalization movement, is a social movement critical of economic globalization. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist movement, anti-corporate globalization movement, or movement against neoliberal globalization. There are many definitions of anti-globalization.

Participants base their criticisms on a number of related ideas. What is shared is that participants oppose large, multinational corporations having unregulated political power, exercised through trade agreements and deregulated financial markets. Specifically, corporations are accused of seeking to maximize profit at the expense of work safety conditions and standards, labour hiring and compensation standards, environmental conservation principles, and the integrity of national legislative authority, independence, and sovereignty. Some commentators have variously characterized changes in the global economy as "turbo-capitalism" (Edward Luttwak), "market fundamentalism" (George Soros), "casino capitalism" (Susan Strange), and as "McWorld" (Benjamin Barber).

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