Preferential trade agreements are like high-fives between countries saying, "Let's be buddies and make trading easier!" Here are the types

• Bilateral Agreement: Just two countries. Think BFFs! 🤝
• Regional Agreement: Neighboring countries teaming up like a local sports team. 🏉
• Plurilateral Agreement: Friends from different neighborhoods joining the party! 🎉
• Multilateral Agreement: The whole world's in on this one. Think United Nations, but for trading! 🌍

Trading blocs are like exclusive clubs where countries make special rules for trading.

• 320 in 2020, up from 294 in 2019. Why? More countries want in on the action! 💼

Types of Trading Blocs

• Free Trade Area (FTA): Like a potluck party, bring what you've got, no fees at the door! But hey, 80% of your dish has to be home-cooked (e.g., USMCA, ASEAN Free Trade Area).
• Customs Union: Like an FTA but with a common entry fee for outsiders (e.g., Southern African Customs Union, EU in 1968).
• Common Market: FTA + Customs Union + free movement of money and people. It's like a big friendly neighborhood (e.g., MERCOSUR, COMESA).
• Economic and Monetary Union: All of the above, plus shared money and rules. Like a family using the same piggy bank and rulebook (e.g., European Union with the euro).