Both the creation of trade and the diversion of trade have a decisive impact on the establishment of a free trade agreement. The creation of trade will result in a shift in consumption from a cost producer to a low-cost producer, which will lead to an expansion of trade. On the other hand, trade diversion will mean that trade will move from a low-cost producer outside the zone to a more expensive producer in the free trade agreement.  Such offshoring will not benefit consumers under the free trade agreement, which will be deprived of the opportunity to purchase cheaper imported goods. However, economists note that trade diversion does not always harm the overall national well-being: it can even improve national well-being as a whole if the volume of misappropriated trade is low.  The WTO continues to classify these agreements according to the following species: Together, these agreements mean that, according to the government, about half of the goods entering the United States enter duty-free. The average import duty on industrial products is 2%. As soon as the agreements go beyond the regional level, they need help. The World Trade Organization intervenes at this stage. This international body contributes to the negotiation and implementation of global trade agreements. There are significant differences between unions and free trade zones.
Both types of trading blocs have internal agreements that the parties enter into to liberalize and facilitate trade between them. The key difference between unions and free trade zones is their approach to third parties [lack of ambiguity needed]. While a customs union requires all parties to apply and maintain identical external tariffs on trade with non-parties, parties to a free trade area are not subject to such a requirement. Instead, they can set and maintain any customs regime for imports from non-parties, as they see as necessary.  In a free trade area without harmonized external tariffs, the parties will adopt a system of preferential rules of origin to eliminate the risk of trade diversion [necessary ambiguities].  Published in November 2020 and foreword by DG Commerce Director-General Sabine Weyand (other languages), the report on the implementation of the EU Free Trade Agreement (other languages) provides an overview of the achievements of 2019 and remarkable work for the EU`s 36 main preferential trade agreements. The accompanying staff working document provides detailed information in accordance with the trade agreement and trading partners. The EU has trade agreements with these countries/regions, but both sides are now negotiating an update. All these agreements still do not collectively add up to free trade in its form of free trade. Bitter interest groups have successfully imposed trade restrictions on hundreds of imports, including steel, sugar, automobiles, milk, tuna, beef and denim. A trade agreement signed between more than two parties (usually neighbouring or in the same region) is considered multilateral.