Simply put, a trade agreement between two or more nations defines how they co-operate in conducting trade. The main purpose of the agreement is to ease the flow of goods and services from one country to another on mutually agreed-upon terms and conditions. This can be done via either a preferential or a free trade agreement. Such agreements give a competitive advantage to the countries signing them. In an export-import scenario, the exporting country is exposed to and able to access foreign markets, which helps it gain new customers, thus spurring growth and revenue.
BP 570 – Unpacking AGOA by Kenny Pasensie