There are three different types of trade agreements. The first is a unilateral trade agreement This happens when one country wants to impose certain restrictions, but no other country wants them to be imposed. It also allows countries to reduce the number of trade restrictions. It is also something that is not frequent and could affect a country. Regional trade agreements are very difficult to set up and engage when countries are more diverse. The North American Free Trade Agreement (NAFTA) of January 1, 1989, when it entered into force, is between the United States, Canada and Mexico, this agreement was developed to eliminate customs barriers between different countries. The WTO continues to classify these agreements into the following categories: in the modern world, free trade policy is often implemented through a formal and mutual agreement between the nations concerned. However, a free trade policy can simply be the absence of trade restrictions. Trade pacts are often politically controversial, as they can change economic practices and deepen interdependence with trading partners.
Improving efficiency through „free trade“ is a common goal. Governments largely support other trade agreements. A trade agreement signed between more than two parties (usually in the neighbourhood or in the same region) is considered multilateral. These face the main obstacles – in the negotiation of the substance and in the implementation. The more countries involved, the more difficult it is to achieve mutual satisfaction. Once this type of trade agreement is concluded, it will become a very powerful agreement. The larger the GDP of the signatories, the greater the impact on other global trade relations. The most important multilateral trade agreement is the North American Free Trade Agreement between the United States, Canada and Mexico.  Free trade agreements that constitute free trade areas are generally outside the scope of the multilateral trading system. However, WTO members must inform the secretariat when concluding new free trade agreements and, in principle, the texts of free trade agreements are subject to review by the Committee on Regional Trade Agreements.  Although a dispute that arises within free trade areas is not the subject of disputes before the WTO Dispute Settlement Body, „there is no guarantee that WTO panels will comply with it and refuse to exercise jurisdiction in a given case.“  A free trade agreement (FTA) or treaty is a multinational agreement under international law aimed at creating a free trade area among cooperating states. .