What is a Bilateral Trade?

Bilateral trade is a trade agreement between two countries. Generally it involves a plan for balanced trade between the two countries. That is, there will be no major deficit or surplus in trade between the countries.

Also, in bilateral trade, the two countries agree to reduce tariffs, remove import quotas, export restraints and all other barriers associated with the trade.

 The Office of Bilateral Trade Affairs is in charge of the U.S bilateral trades. It has the aim of promoting trade, investment, and economic development between countries. 

The 12 countries the U.S has a bilateral trade agreement with are: Israel (1985), Jordan (2001), Australia, Chile, Singapore (2004), Panama, Colombia, South Korea (2012) and with Bahrain, Morocco, Oman (2006), Peru (2007).