A commercial agreement is an agreement linked to a commercial activity.
A trade agreement is an agreement or treaty regarding commercial activity. This type of agreement can be established by private companies, business organizations or governments.
For example: "The mattress manufacturer Dormexgood announced a commercial agreement with the transporter Ibañez Pereyra Hermanos to speed up the distribution of its products" , "I believe that this commercial agreement will provide us with great income in the coming months" , "The Philippine government was in accordance with the trade agreement established with the neighboring nation .
Business agreement concept
The concept is made up of two words that have something in common: their etymological origin. And both come from Latin: agreement is the result of the sum of two Latin components, the prefix ad- which means "towards" and the noun cordis which can be translated as "heart" ; commercial , for its part, is composed of the prefix con- which is equivalent to "completely" , the name merx which is synonymous with "merchandise" and finally the suffix -al" which has the meaning of "relative to" .
Before moving forward, it is important to indicate that an agreement is an agreement between two or more parties . It is the fruit of a negotiation, which is reached when those involved adopt a common position on a certain issue. Commercial , on the other hand, is that belonging to or relating to commerce or merchants . Commerce is known as the socioeconomic activity that involves the purchase and sale of goods, both for use and for resale or transformation.
Trade agreements can be signed between companies, between States or between private and public actors.
Different types of agreement
In general, when the agreement is reached between two countries, it is usually referred to as a trade treaty . The States agree on a model of relations that regulate commercial exchanges between them. Taxes, the base currency, border control and the jurisdiction accepted by the parties are some of the issues established by this type of agreement.
Likewise, it must be emphasized that there are so-called preferential trade agreements , which are those that are established between two countries and that are identified by eliminating or reducing tariffs between borders as well as by facilitating product export procedures. An example of those are those that the European Union maintains with certain regions of the world.
The Anti-Counterfeiting Trade Agreement
In addition to all of the above, we would have to highlight the existence of what is known as the Anti-Counterfeiting Trade Agreement ( ACTA ). This is an international and voluntary agreement that many countries around the world have signed with the clear objective of recording their support for intellectual property .
In this way, an attempt is made to fight not only against existing piracy, but also against counterfeiting of goods of all kinds. The United States , Australia , Canada , France , the United Kingdom , Italy , Portugal and Greece are some of the nations that have signed this legal agreement.
Agreements between private companies
Regarding commercial agreements between private companies, their objective is usually to generate synergies that allow them to strengthen the position of both in the market .
The agreement can be reached between companies in the same economic sector (to reduce costs, reach a foreign market, etc.) or between firms in different sectors.