A trade agreement is a formal treaty between two or more nations that outlines the terms of trade, including tariffs, trade quotas, and regulations. Such agreements are significant in international relations as they facilitate economic cooperation and can strengthen diplomatic ties. By reducing trade barriers, these agreements promote growth in exports and imports, thereby enhancing the economies of the involved nations. Additionally, trade agreements can set standards for labor and environmental practices, influencing global norms and often leading to broader political or economic alliances.