Barter is quite modern

Barter is one of the oldest types of trade between representatives of different tribes first, and then of state entities. This type of trade represents an equivalent natural exchange of goods without currency settlements. The barter transaction, unlike other forms of counter trade, does not imply a cash surcharge for the transaction.

Counter trade also includes counter purchases, tolling (operations with give-and-take raw materials), compensation deals and the purchase of obsolete equipment. Unlike other forms, barter is an appreciated, but completely non-currency exchange of goods. The equivalence of such transactions is determined on the basis of world prices that have developed in the industry under consideration at a given time.

The barter treaty is actually a double purchase-and-sale contract with identical conditions regarding penalties, insurance conditions, force majeure circumstances, etc. Already in the preamble of the contract, it is noticeable that it differs from the usual commercial contract, because the parties can not be defined as the "Buyer" and the "Seller", but more often referred to as "Buyer 1" and "Buyer 2" or "Party 1" and "Party 2". Complaints on the implementation of the contract are also satisfied exclusively by additional supplies of a particular product. Thus, if one of the suppliers is late with the shipment of their products, then, in accordance with the contract, it will have to compensate the losses of the other party in the commodity equivalent. Since the products on the world market differ in terms of utility, scarcity and cost, this ratio should initially be carefully calculated and prescribed in the contract.

Barter - a type of trade, the prevalence of which in modern conditions due to the following reasons:

1) the lack of the necessary foreign exchange resources for the transaction from one of the parties;

2) limited nomenclature and assortment of goods on the market.

Barter allows you to solve these problems of the company and allows it to enter the international market, which generally has a positive effect on its profitability. However, with the use of barter, a number of difficulties are connected, which negatively affect the economic situation in the country. In this regard, according to the WTO charter, barter transactions, which do not involve additional financial settlements between the seller and the buyer, are prohibited.

Barter is a form of trade, the use of which leads to problems. They include understating the customs value of goods, which leads to the difficulties of their customs records when crossing the sovereign border of a state. This leads to a distortion of foreign trade statistics , and therefore contradicts the concept of open trade and hinders the liberalization of trade relations. But other forms of counter trade are quite recommended for use under the WTO charter. For example, without redemption of obsolete products in modern competitive conditions, automobile corporations would simply not survive. In addition, the modern consumer, especially in the West, is increasingly seeking to show his concern for the environment, and firms are trying to benefit from this.