Trade agreements have a considerable impact on domestic policy by shaping economic conditions and regulatory frameworks within countries. Such agreements can lead to increased trade flows, job creation, and economic growth, or they may result in job losses and industry shifts if local businesses cannot compete. Policymakers must then adjust domestic policies to reflect these changes. Furthermore, trade agreements often involve stipulations that can influence regulations on labor rights, environmental standards, and import-export practices, affecting how countries govern their economic interactions.