Trade Partnership

 

Regional integration is increasingly recognized as a key avenue for promoting economic growth and reducing poverty. Trade partnership between countries has become a central instrument of regional integration in all parts of the world. Beyond market access and the progressive elimination of barriers at the border, Trade Partnerships are increasingly being used to address a host of behind-the-border issues, also known as 'deep integration' issues, in order to promote cooperation in the areas of investment, trade facilitation, competition policy, and government procurement, as well as wider social issues related to the regulation of the environment and the protection of labour and human rights.

A trading partnership is an alternative if at least two natural persons or legal entities wish to start a business together. There is no requirement to invest capital, although the partners are personally, jointly and severally liable for the company's debts.

Personal liability means the partners are responsible with their personal assets for the company's liabilities and agreements. Joint and several liability means that each partner personally can be forced to pay all the company's liabilities. The partner who has paid can then demand that the other partners pay their share of the debt.

A limited partnership is a variant of a trading partnership. At least one person must have unlimited personal liability for the company's liabilities; the other partners are only liable for the capital they have invested.