A bilateral trade agreement, also known as a free trade agreement (FTA), is a pact between two countries that aims to reduce or eliminate trade barriers between them. These agreements can be comprehensive, covering all areas of trade and investment, or they can be limited to specific products or sectors.

An example of a successful bilateral trade agreement is the North American Free Trade Agreement (NAFTA), which was signed in 1994 by Canada, Mexico, and the United States. The agreement eliminated tariffs on most goods traded between the three countries and created new rules for investment and intellectual property.

NAFTA has been credited with increasing trade between the three countries and boosting economic growth. However, it has also been criticized for causing job losses in certain industries and for not doing enough to protect labor and environmental standards.

Another example of a bilateral trade agreement is the Australia-United States Free Trade Agreement (AUSFTA), which came into effect in 2005. The agreement eliminated tariffs on a wide range of goods and services, including agricultural products, and created new rules for intellectual property and investment.

AUSFTA has been credited with promoting increased trade and investment between the two countries, and has been particularly beneficial for Australian farmers and exporters. However, it has also been criticized for not doing enough to protect Australian cultural industries and for not addressing certain barriers to trade, such as non-tariff barriers.

Overall, bilateral trade agreements can be an effective way to promote increased trade and investment between countries. However, they must be carefully negotiated and implemented to ensure that they benefit all parties involved and do not have negative impacts on important social and environmental standards.