A trade in goods agreement (TIGA) is an international trade agreement that governs the flow of goods between different countries. TIGAs typically cover a wide range of goods, from raw materials to finished products, and establish rules and regulations that govern their import and export.
The purpose of a TIGA is to promote trade between countries by reducing barriers to entry and ensuring fair competition. By standardizing rules and regulations, TIGAs help to create a level playing field for exporters and importers, which in turn can lead to increased economic growth and development.
One of the key features of a TIGA is the establishment of a tariff schedule. Tariffs are taxes that are imposed on imported goods, and they can significantly increase the cost of importing goods. TIGAs typically establish a schedule of tariffs that sets out the rates at which goods can be imported into a country. This helps to reduce the cost of importing goods and increases the competitiveness of local producers.
Another important feature of a TIGA is the establishment of rules of origin. These rules help to determine the source of a product and whether it qualifies for preferential treatment under the agreement. For example, if a TIGA requires that a certain percentage of a product be made in a particular country in order to qualify for preferential treatment, then the rules of origin will specify how that percentage is calculated.
TIGAs can also address other issues related to trade, such as intellectual property rights, technical standards, and environmental regulations. By establishing common standards and rules, TIGAs can help to reduce the cost of doing business and increase the competitiveness of businesses in different countries.
Overall, TIGAs can be an effective way to promote trade and economic growth between countries. By establishing rules and regulations that promote fair competition and reduce trade barriers, TIGAs can help to create new opportunities for businesses and consumers alike. If you are interested in learning more about TIGAs and how they can benefit your business, it is worth consulting with a trade expert or legal professional who is experienced in international trade law and regulations.