In this paper we will discuss about bilateral trading system. Now a days, most of the countries, both developed and developing, are going for bilateral trading system. The popularity of bilateral trading system is increasing day by day. The number of bilateral trade agreements has increased a lot over the last decade. Currently, the total number of bilateral trade agreements across the globe has surpassed the three hundred-figure marks.
In the Asia Pacific region, the number of bilateral trade has tripled during the past five years. The global economy has also changed during the last decade. Therefore, in this changing scenario, more countries are now going for bilateral trade system. The European Union countries are now very much interested to in setting bilateral agreements with the Asian nations.
The World Trade Organization has made several bilateral agreements with the United States of America. In a bilateral trading system two countries set a trading agreement between them.
According to the terms and considerations written in the agreement, the trading between those two is done. It is helpful for both the countries, for a country may oil reach while the other is rich in technology. Therefore, these two countries may agree to trade and exchange oil for new technologies or vice versa.
In 2006, USA made a trade agreement with the People Republic of China. The agreement between world’s two businesses giant was extremely important for the rest of the world. Both the countries are technologically reached, although China’s economy is still developing. This agreement seized the cold war between US and China to some extent.
So it is seen that the bilateral trading system has a significant impact on the global political issues as well. The on growing popularity of the bilateral trade agreements only proves the above statement.