Definition of a Trading Partner
A trading partner is an organization that engages in electronic business (e-business) with other organizations (21 USC § 360eee(23)). Sterling B2B Integrator requires specific information about trading partners to automate the secure exchange of business documents with them. This information is stored in a trading partner profile, also known as a trading profile (IBM, n.d.).
Trading Partner Agreement
A trading partner agreement is a formal contract between two parties that outlines the terms and conditions of their trade or trading process (Investopedia, n.d.). It includes responsibilities, parties involved, delivery and receipt of goods or information, and any associated duties or fees.
Types of Trading Partner Agreements
Trading partner agreements can be used in various contexts, including:
Fourth Market Transactions
In complex financial trade transactions, trading partner agreements are used to manage the terms of the trade, such as swaps, which involve derivative contracts to manage interest rate risk (Investopedia, n.d.).
Business Information
Trading partner agreements are used by data providers, credit reporting agencies, and healthcare companies to govern the exchange of industry data and information (Investopedia, n.d.).
Goods and Services
Trading partner agreements are also used in internal and domestic trade to manage the exchange of goods and services, specifying terms of delivery, price values, and tariffs (Investopedia, n.d.).
Government Contracts
Government agencies, such as healthcare authorities, may have trading partner agreements with businesses for exchanging goods and data, ensuring compliance, confidentiality, and security (IBM, n.d.).
References
- 21 USC § 360eee(23). (n.d.). LII / Legal Information Institute. https://www.law.cornell.edu/definitions/uscode.php?width=840&height=800&iframe=true&def_id=21-USC-721489097-1306475318&term_occur=1&term_src=title:21:chapter:9:subchapter:V:part:H:section:360eee
- IBM. (n.d.). Introduction to trading partners. IBM Documentation. https://www.ibm.com/docs/en/b2b-integrator/5.2?topic=partners-introduction-trading
- Investopedia. (n.d.). Trading Partner Agreement: Meaning, Uses, Example. Investopedia. https://www.investopedia.com/terms/t/trading-partner-agreement.asp
FAQs
Definition of a Trading Partner
A trading partner is an organization that engages in electronic business (e-business) with other organizations (21 USC § 360eee(23)). Sterling B2B Integrator requires specific information about trading partners to automate the secure exchange of business documents with them. This information is stored in a trading partner profile, also known as a trading profile (IBM, n.d.).
Trading Partner Agreement
A trading partner agreement is a formal contract between two parties that outlines the terms and conditions of their trade or trading process (Investopedia, n.d.). It includes responsibilities, parties involved, delivery and receipt of goods or information, and any associated duties or fees.