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Difference Between Free Trade Agreement And Bilateral Trade Agreement

Some bilateral trade agreements cover a limited range of traded products, such as the bilateral textile agreement between the United States and Cambodia, which was extended for three years in January 2002. But these agreements must be seen in a global context as a springboard to full integration into a global market economy. This is an additional way to ensure that governments implement measures to liberalize, privatize and deregulate the corporate globalization agenda. The General Agreement on Tariffs and Trade (GATT 1994) originally defined free trade agreements that were to include only trade in goods. [5] An agreement with a similar purpose, namely the improvement of trade in services, is referred to as the « economic integration agreement » in Article V of the General Agreement on Trade in Services (GATS). [6] However, in practice, the term is now commonly used [by whom?] to refer to agreements that concern not only goods, but also services and even investments. Environmental provisions have also become increasingly common in international investment agreements, such as free trade agreements. [7]:104 In general, there appear to be incompatible interests of different countries or groups, particularly between developed and developing countries. As public opinion engages at the multilateral level, many nations are beginning to negotiate bilaterally. Bilateral agreements have significantly expanded to more than 50% of the negotiations that took place under these 300 agreements in 2005. This development is considered to be very critical.

There are two main views in public opinion: first, bilateral free trade is a first step towards multilateral free trade, while others believe that bilateral trade agreements are discriminatory and lead to a fragmentation of the global trading system and the decline of the multilateral free trade system. Since the 2008 financial crisis, there has been a trend towards mega-regional trade agreements. These are between more than two countries and account for a significant share of world trade or investment. These agreements include the Comprehensive Regional Economic Partnership (RCEP), the Trans-Pacific Partnership (TPP), the Trade in Services Agreement (TiSA) and the Transatlantic Trade and Investment Partnership (TTIP). Finally, they give up the freedom to pursue their own independent trade agreements – to prevent one of them from negotiating a preferential agreement with a third country and underestimating his colleagues.