Bilateral Trade Agreement

This article is about the political term; for the term as used in biology, see symmetry (biology). Bilateralism is a term referring to political and cultural relations between two states. Most international diplomacy is done bilaterally. Examples of this include treaties between two countries, exchanges of ambassadors, and state visits. The alternatives to bilateral relations are multilateral relations, which involve many states, and unilateralism, when one state acts on its own.There has long been a debate on the merits of bilateralism versus multilateralism. The first rejection of bilateralism came after the First World War when many politicians concluded that the complex pre-war system of bilateral treaties had made war inevitable. This led to the creation of the multilateral League of Nations.
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Commerce between two countries based on a reciprocal trade agreement which specifies the quantity of goods to be traded, the time limit of the agreement and that the balances due be remitted directly between the countries. (TNDOT1)

A trade agreement between any two countries. The agreement may be either preferential (the obligations and benefits apply only to the two countries involved) or most-favored-nation (the benefits and obligations negotiated between the two countries are extended to all or most other nations). The U.S.-Israel Free Trade Agreement is one example of a preferential trade agreement.