Legal Definitions - reciprocal trade agreement

A reciprocal trade agreement is a deal between two countries that allows them to trade goods with each other at lower tariffs and better terms than they have with other countries. This means that both countries benefit from the agreement.

One example of a reciprocal trade agreement is the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico. Under NAFTA, these countries agreed to reduce tariffs and other trade barriers between them, making it easier and cheaper to trade goods.

Another example is the Japan-Australia Economic Partnership Agreement (JAEPA), which allows for the exchange of goods between Japan and Australia at lower tariffs than they have with other countries.

These examples illustrate how reciprocal trade agreements can benefit both countries involved by making it easier and cheaper to trade goods. This can lead to increased economic growth and job opportunities for both countries.