What characterizes bilateral trade agreements?

Bilateral trade agreements are characterized by their involvement of just two nations. This type of agreement facilitates trade relations between the two countries by reducing tariffs, eliminating trade barriers, and establishing trade terms that benefit both parties. The primary purpose is to enhance economic cooperation and trade volume between the two nations, allowing them to mutually benefit from more favorable trade conditions.

In contrast, options that mention numerous countries or global trade standards pertain to multilateral agreements, which involve three or more nations and aim for broader trade cooperation on a larger scale. The mention of strict regulations governing imports does not specifically define a bilateral trade agreement, as such regulations can vary widely and are not a defining feature of these agreements.