Trade agreements shape international relations and economic policies by establishing the terms under which countries trade goods and services. These agreements can foster cooperation, reduce tariffs, and enhance market access, leading to increased economic integration and mutual benefits. For example, agreements like NAFTA have transformed economic landscapes by encouraging cross-border commerce. However, trade agreements can also lead to disputes over compliance, labor standards, and environmental regulations. Consequently, they play a crucial role in defining not only economic strategies but also geopolitical alliances and tensions, influencing both local and global policymaking.