Bilateral trade agreements are contracts between two countries that outline the terms of trade between them. These agreements aim to reduce or eliminate tariffs, quotas, and other trade barriers, making it easier for businesses in both countries to exchange goods and services. By fostering trade, these agreements can enhance economic cooperation and growth. Countries often negotiate bilateral trade agreements to gain a competitive advantage in specific markets. For example, a country may seek to export its agricultural products to another country while importing technology. Such agreements can lead to increased investment and stronger economic ties between the nations involved.