What agreement eliminates tariffs and quotas on goods traded between participating countries?

Free trade agreements are formal agreements between two or more countries that aim to reduce or eliminate tariffs, quotas, and other trade barriers on the goods and services traded between them. This promotes trade by lowering the cost of exports and imports, encouraging economic cooperation, and increasing market access for participating countries.

Under such agreements, member countries benefit from an enhanced flow of goods and services, making it easier for businesses to operate across borders. These agreements also often include provisions to protect intellectual property rights and establish business standards, further facilitating trade relationships.

The other options do not specifically address the elimination of tariffs and quotas in the same comprehensive way as free trade agreements. Trade partnerships and economic alliances may involve collaboration in trade but do not inherently focus on the removal of trade restrictions to the extent that free trade agreements do. Mutual agreements, while a broad term, also lack the specificity and formal structure needed to directly eliminate trade barriers. Thus, free trade agreements are the most precise answer to the question regarding the elimination of tariffs and quotas.