A bilateral trade agreement gives privileged trade status between two nations. By giving them access to each other`s markets, they increase trade and economic growth. The terms of the agreement harmonize commercial activity and a level playing field. Bilateral agreements strengthen trade between the two countries. They open markets to successful sectors. If companies take advantage of it, they create jobs. examples of multilateral agreements, In addition to the TPP, the 1994 North American Free Trade Agreement (NAFTA), signed between the United States, Canada and Mexico, signed in 2004 by the United States with Costa Rica, the Dominican Republic, Guatemala, Honduras, Nicaragua and El Salvador, paved the way for the WTO (World Trade Organization) agreement among all 149 member states. In addition, agreements have been signed specifically for intellectual property, which are an important element of all trade agreements, such as the Paris Patent Convention, the General Copyright Agreement and the Bern Copyright Agreement and the World Trade Organization (WTO) trade agreement, to name a few. Consumers in the country also benefit from lower costs. You can get exotic fruits and vegetables that can become too expensive without the agreement. The various IP treaties and the WTO agreement are totally ineffective.
That could explain President Trump`s U-turn from a supporter of multilateral treaties to bilateral agreements. China is the main breach of WTO trade agreements and the law agreement. In the first 15 years of WTO membership, only China achieved a unilateral victory result and not a win-win with the United States and the rest of the world. Hufbauer notes that U.S. trade negotiators «will be full» to renegotiate the terms of U.S. trade with Mexico and Canada. And while some predict that future bilateral agreements could be concluded with Japan, and in particular with the UK, «that won`t happen soon,» he says. In both cases, the negotiation process would also face challenges. Hufbauer points out that in the case of the UK, «we won`t really know what we will get until they end their exit from the EU. It`s at least two years [to the future] and it could take longer. That`s a good thing in the Trump administration.
As far as Japan is concerned, the problem is that [Prime Minister Shinzo] Abe is very cautious… on a free trade agreement with the United States alone, because he knows where the United States comes from. The United States wants Japan to open up a lot of agriculture, much more than in the TPP. The Japanese felt that they were giving as much as possible in the TPP, given their constituency. On the other hand, Hufbauer adds, «The great advantage of bilateral pacts from Trump`s point of view is that the United States, as a big boy on the block, will be able to extract more from its bilateral partners than its multilateral partners…. That`s the balance [Trump] is playing. Are we considering whether a bilateral or multilateral trade agreement would better serve U.S. interests? Proponents of the Trans-Pacific Partnership had argued that one of the greatest virtues of the 12-country trade agreement was to open Japanese markets to U.S. exports, in a way that Japan only wanted to tolerate because the TPP also promised to improve market access for Japanese exporters in other TPP member countries in Asia and Latin America. Is it possible to negotiate a bilateral pact with Japan that would provide the United States with the same value – or better – that the TPP would have provided? «That`s the problem,» Guillen says. «Do these [bilateral] agreements open markets? It seems that the approach is ad hoc, on a case-by-case basis, and not holistic. The United States has 20 bilateral free trade agreements in place and has existing bilateral agreements with all Trans-Pacific Partnership (TPP) countries, with the exception of Brunei, Japan, Malaysia, New Zealand and Vietnam, and has a multilateral regional agreement with Canada and Mexico.