What is a Bilateral Agreement?
Bilateral Agreements
Bilateral trade agreements are between two countries. Both countries consent to extricate trade restrictions to grow business opportunities between them. They set rules of trade between two countries. The agreements may be limited to specific goods and services or certain types of market entry barriers. They lower tariffs and confer preferred trade status with each other. The sticking point usually centers around key protected or subsidized domestic industries. Different types of agreements define the level of the international integration from free trade to customs and economic unions.
for example, India-Sri Lanka Free Trade Agreement
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