What is the difference between bilateral and multilater
| What is the difference between bilateral and multilateral trade?
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SOLUTION
Bilateral trade refers to trade between two countries. When two countries have some special agreement related to trade between them it is called bilateral trade agreement. Through bilateral agreements countries give special status to certain countries.
Multilateral trade agreements refers to trade between many countries.
WTO tries to facilitate both types of agreements through removal of tariffs and non- tariff barriers between its member countries. It tries to encourage multilateral trade more than bilateral trade.