Commercial agreement is a term that is made up of two words that have something in common: their etymological origin. And it is that both come from Latin:
• Agreement is the result of the sum of two Latin components: the prefix “ad-”, which means “towards”, and the noun “cordis”, which can be translated as “heart”.
• Commercial, for its part, is made up of the following parts: the prefix “with”, which is equivalent to “completely”; the name “merx”, which is synonymous with “merchandise”; and finally the suffix “-al”, which has the meaning of “relative to”.
Agreement it’s a agreement between two or more parties. It is the fruit of a negotiation, which is reached when those involved adopt a common position on a certain issue.
Commercial, meanwhile, is that belonging to or relating to commerce or merchants. It is known as Commerce to the socio-economic activity that implies the purchase and sale of goods, both for their use and for their resale or for their transformation.
A trade agreement, therefore, it is a agreement or treaty relating to trading activity. This type of agreement can be established by private companies, business organizations or governments.
For instance: “The mattress manufacturer Dormexgood announced a commercial agreement with the transporter Ibañez Pereyra Hermanos to speed up the distribution of its products”, “I believe that this commercial agreement will provide us with great income in the coming months”, “The Philippine government agreed with the trade agreement established with the neighboring nation”.
In general, when the agreement is reached between two countries, it is often referred to as trade treaty. The state They agree on a model of relationships that regulate commercial exchanges between the two. Taxes, the base currency, border control and the jurisdiction accepted by the parties are some of the issues set by this type of agreement.
Likewise, it should be emphasized that there are so-called preferential trade agreements, which are those established between two countries and which are identified by eliminating or reducing tariffs between borders as well as by facilitating product export procedures. An example of those are those maintained by the European Union with certain regions of the world.
In addition to all the above, we would have to highlight the existence of what is known as the “Anti-Counterfeiting Trade Agreement” (ACTA). It is an international and voluntary agreement that many countries around the world have signed with the clear objective of stating their support for what would be intellectual property.
In this way, it is intended to fight not only against existing piracy but also against what would be the counterfeiting of goods of all kinds. The United States, Australia, Canada, France, the United Kingdom, Italy, Portugal or Greece are some of the nations that have signed this legal agreement.
Regarding commercial agreements between private companies, their objective is usually to generate synergies that allows strengthening the position of both in the market. The agreement can be reached between companies from the same economic sector (to reduce costs, reach a foreign market, etc.) or between firms from different sectors.