The reciprocal trade agreement (RTA) is a policy designed to promote mutually beneficial trade relations between two or more countries. It is an agreement in which two or more countries agree to reduce or eliminate tariffs, barriers, and quotas on goods and services traded between them. The purpose of such an agreement is to increase market access for businesses and to promote fair competition.

The idea behind a reciprocal trade agreement is that it helps to reduce trade barriers between two or more countries, facilitating the flow of goods and services and leading to increased economic activity and growth. In essence, it creates a level playing field for businesses and encourages trade between the signatory countries.

The primary objective of an RTA is to increase trade between the participating countries, leading to greater economic growth and prosperity for all involved. It is also meant to promote investment and encourage the development of new markets for goods and services, which in turn creates jobs and stimulates economic activity.

One important aspect of an RTA is that it must be mutually beneficial. This means that both parties must benefit from the agreement in order for it to be considered successful. For instance, if one country agrees to reduce tariffs on certain goods imported from another country, the other country should reciprocate by reducing tariffs on goods it imports from the first country.

Overall, the purpose of reciprocal trade agreements is to create a more favorable trading environment for businesses and to promote economic growth and prosperity for participating countries. By reducing trade barriers and increasing market access, RTAs encourage healthy competition and help businesses to succeed.