bilateral trade agreement

A bilateral trade agreement is a contractual arrangement between two states concerning their trade relationships. These agreements aim to reduce trade barriers, such as tariffs and nontariff restrictions, thereby increasing trade between the participating countries. Key features often include reciprocity, where both parties make concessions, and a most-favoured-nation clause, ensuring that the lowest tariffs are extended to all trading partners with this status. National treatment clauses ensure that imported goods are treated no less favorably than domestically produced goods. These agreements are a way to control and promote international trade.123