Trade agreement

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A trade agreement, often abbreviated as TA, between two countries is a diplomatic agreement that their merchants will not compete with each other.

Creating Trade Agreements

A trade agreement may be created by a diplomatic action between two countries. The option is available only when there is currently no trade embargo between them. Attempts never seem to succeed with low relations, but can succeed with relations down to perhaps -100. High relations and good diplomatic skill in the monarch seem to help.

Effects of Trade Agreements

When a trade agreement is in place between two countries, the following effects apply:

  • When attempting to send merchants into CoTs, neither country's merchants will "bump" the other's.
  • Neither country may impose a trade embargo against the other.
  • Both country's trade efficiency is decreased by 3%.

Uses of Trade Agreements

  • To reduce competitive friction and get more out of your merchants
    • Good - Agreements are with frequent competitors
    • Bad - Agreements are with non-competitors, or you are losing more in trade efficiency than you gain in not losing merchants
  • To allow a country five merchants in your monopoly'd CoT without them kicking you out of monopoly status and forcing you to waste your merchants to correct this
    • The CoT may have a low value and traders provide more in tariffs then they get in trade
    • You may just want to preserve relations with this alternative to an embargo
  • To access another country's monopoly'd CoT where they are jealous and prone to embargoing and competing you out