miércoles, 9 de agosto de 2017

The Importance of Free and Fair Trade Agreements

To ensure the benefit of both the producers and the business.

Commercial activities need to be done in a way that is not only profitable but also beneficial, beyond the economic aspects, for all parties involved. Free and fair trade agreements are specially fructiferous for societies, as the economic development creates a stable growth in all senses. The application of these agreements becomes even more relevant when you consider them as opportunities to improve the commercial and social benefits for all the business parties. They are fundamental for the development of economically relevant markets and are a necessary element in all commercial activities.

To understand the relevance of both of these, it’s important that you know them individually:

  • Free trade: this condition implies the free movement of commercial trades across the borders. It means that exportations and importations are not subject to special tariffs or taxes and that governments and legal institutions are not legally responsible for the transit of these goods.

  • Fair trade: it seeks the benefit of the producers and commercial entities: distributors, manufacturers or consumers. Fair trade establishes a series of terms that give manufacturers several benefits. These trade agreements are laid out with opportunities for improvement in the production, as well as other benefits. These can be social and productive policies established to enable them to improve their commercial opportunities.  

Why are these agreements important?
Both of these agreement conditions have the potential to ensure economic and social growth for the societies involved in them. By creating a safe and beneficial environment for producers to work, you ensure that many of them will increase the quality of their product, which will, in turn, create a surge in the offer and the subsequent demand for products. The fact that producers, typically marginalized in the economic chain, are satisfied and safe also creates social stability.  

Social stability is deeply connected to the productivity and the ability to create more economic opportunities. When trade agreements are free and fair, producers have a more profit-oriented mindset, which transforms them into a potency for that particular market. This growth enables them to commercialize in bigger scales, and to a larger fraction of the commercialization sector.

Importation and exportation processes are also done with more consideration to the social and economic relevance as a whole, for new markets are established for all fields of commercialization. These are where these trades are more if not exclusively oriented to create better conditions for trades in the commodity market.

But the free and fair trade agreement benefits don’t end there: societies are also benefited from them. Offer and demand are considered integral parts of this process. And the creation of alliances and quality standards create a competitive setup for companies that are involved in the trade business. As with any other commercial activity, once there’s a high-quality product in high demand, and with a great offer, the competitiveness rises too and prices stabilize. That way consumers can acquire more products, benefiting both the industry and the individual buyers.

Coagro Corp works side by side with producers to ensure excellent treaties for both parties. Through assistance, monitor, support, economically beneficial deals, and trade agreements, they offer their buyers high-quality products that comply with all the legal requirements. Want to trade with the experts? Then Coagro is the way to go! Contact them now through their social media profiles!

Benefits for both parties in a business agreement.



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