What is a bilateral trade agreement?

1. Nations that trade with each other often decide to formalize their relationship. 2. Their governments meet and work out agreements for a common economic policy. 3. The result may be an economic community or a bilateral trade agreement. 4. A bilateral trade agreement is an agreement between two countries to lower trade barriers. 5. Agreements between firms, banks or ports are commercial arrangements rather than trade agreements. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.5 International Economic Communities_