What are the differences between bilateral and multilateral trade agreements?

Alfonso Llanes, Master Degree in International Development

Written Mar 2

In international trade bilateral means between two nations and multilateral means among several nations. Must trade agreements under the World Organization rules (WTO) are set for multilateral trade as member countries must abide by these trade rules.

Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO: Non-discrimination which has two major components-- the most favored nation (MFN) rule and the national treatment policy-- including: Reciprocity, binding and enforceable commitments, transparency and safety values.