A trade agreement refers to a contract between two or more states regarding their trade relations. It's a pact specifying a wide range of taxes, tariffs, trade restrictions etc. and could be bilateral or multilateral.
It exists when the countries involved come to a consensus on terms of trade with each other. All the duties and tariffs imposed by a country on imports and exports are determined by this agreement and hence, are directly related to international trade. The idea behind a trade agreement is to clearly outline what is agreed upon between the signatories and the consequences of deviating from the agreement.
BAF
BAF stands for Bunker Adjustment Factor. It refers to a change in carrier’s rates to accommodate the price of oil.
