A bilateral agreement is a deal made between two parties, often countries, to work together on specific issues. This type of agreement can cover various topics, such as trade, defense, or environmental protection. For example, when two nations like Country A and Country B agree to reduce tariffs on each other's goods, they create a bilateral agreement that benefits both economies. These agreements are important because they help foster cooperation and understanding between the parties involved. By establishing clear terms, such as timelines and responsibilities, a bilateral agreement can lead to stronger relationships and mutual benefits, making it easier for Country A and Country B to address shared challenges.