5. Cipollina M, Salvatici L. Reciprocal trade agreements in gravity models: a meta-analysis. Rev Int Econ. (2010) 18:63-80. doi: 10.1111/j.1467-9396.2009.00877.x 7. Dai M, Yotov YV, Zylkin T. On the impact of free trade agreements on trade diversion. Econ Lett. (2014) 122:321-5. doi: 10.1016/j.econlet.2013.12.024 The United States has bilateral trade agreements with 12 other countries. Here is the list, the year in which it came into effect and its effects: Figure 11. Likely distribution of the average length of the ITN sub-networks, which is spanned by all country couples with a bilateral trade agreement (solid purple) and without agreement (light violet), as there is a direct route between countries.

The figures are calculated from the ITN for 2002. In addition to creating a U.S. commodity market, expansion has helped spread the mantra of trade liberalization and promote open borders to trade. However, bilateral trade agreements can distort a country`s markets when large multinationals, with considerable capital and resources to operate on a large scale, enter a market dominated by smaller players. As a result, they may have to close their stores if they compete. Bilateral trade was very popular in Finnish business circles, as it allowed contracts to be contracted with very large contracts, and in addition to having less stringent requirements of sophistication or quality when compared with Western markets. The Soviet side was motivated to participate in clearing trading because the agreement essentially offered cheap credit. The option was to sell commitments on the international market and pay interest in hard currency. Capital, such as icebreakers, railway cars or consumer goods, could be purchased in Finland, and costs would simply become a clearing account deficit, which would ultimately be repaid in the form of crude oil or orders such as nuclear power plants (Loviisa I and II).

The agreement opened one of the fastest growing markets in Latin America. In 2015, the United States exported $25.4 million worth of beef and beef products to Peru. The removal of Peru`s certification requirements, known as the Export Control Program, has provided expanded access to the U.S. farmers` market. The United States has signed bilateral trade agreements with 20 countries, including Israel, Jordan, Australia, Chile, Singapore, Bahrain, Morocco, Oman, Peru, Panama and Colombia. Under a bilateral trade agreement, the countries concerned give each other access to their markets, which leads to trade and economic growth.