Study Guide

Bilateral agreements have long been a feature of international trade relations. They were common before GATT was created, and for many countries they have taken on new importance. Australia has recently concluded bilateral free trade agreements with the United Kingdom, India, and Indonesia. The Australian government has recently concluded negotiations for a free trade agreement with the European Union in March 2026; however, the FTA is not in force as yet. Australia’s agreement with the Gulf Cooperation Council (GCC) is still under consideration while its FTA with the United Arab Emirates (UAE) entered into force on 1 October 2025. Note that some bilateral agreements amount to the creation of a free trade area, as done by ANZCERTA, the Agreement between Australia and New Zealand.

ANZCERTA is a good example of a bilateral agreement that gives greater force and clarity to WTO commitments under GATT and the related agreements. Not all bilateral agreements have that effect.