Top 5 Regional Trade Agreements in the World

In general countries make the majority of their international trade with their close neighbors.

For example the USA makes 29% percent of its total exports to Canada and Mexico while 27% of its total imports from these two close neighboring countries.

Similarly the UK makes 25% percent of its total exports to Germany, France and Netherlands while 26% of its total imports from these three close neighboring countries. These examples can be extended.

Regional Trade Agreements have been set up between close countries with the aim of increasing trade between member states by reducing or eliminating tariffs, quotas and other non-tariff barriers.