A bilateral treaty is an agreement between two sovereign states that outlines their mutual rights and obligations. These treaties can cover various issues, such as trade, defense, environmental protection, or cultural exchange. The terms are negotiated and signed by representatives of both countries, and they become legally binding once ratified. Bilateral treaties play a crucial role in international relations, as they help to establish cooperation and resolve conflicts between nations. Examples include the U.S.-Mexico-Canada Agreement (USMCA) and various peace treaties that have been signed to end conflicts.