World Trade

International trade is the exchange of goods and services between countries.

Sometimes countries trade because they don't have enough resources to satisfy their own wants and needs. At other times, countries trade because they have enough resources to meet their own needs and to sell to others. Countries import goods from other countries that can produce them, and they export their own goods to other countries that need them.

For example, the United States imports clothing from China and Vietnam. Why? It costs much less to produce clothes in these countries than it does to make them in the U.S.

The United States, Canada, and Mexico have a trade agreement that allows them to do away with tariffs. Tariffs are taxes paid for importing and exporting goods with other countries. The trade agreement allows the three countries to be more competitive in the global economy, increase business, and reduce the cost of trade.

The World Trade Organization oversees the trade rules between nations. Its goal is to help countries conduct business in a peaceful manner and resolve any disputes that occur.

Countries that are a part of the World Trade Organization.

It is important for countries to have a good trade relationship with each other. Trade boosts the economy and gives countries unable to produce goods the opportunity to import what they need. Trade also creates jobs in countries that produce and exports goods.

The United States has trade relations with over 75 countries around the world. Below are the top five countries from which goods are imported into the U.S., as well as the top five countries to which goods are exported out of the U.S.