Introduction to Bilateralism -Bilateral trade

Bilateralism is when two countries or organizations work together on political, economic, or cultural matters. It's different from unilateralism, where one party acts alone, and multilateralism, where three or more parties work together.

1. Bilateralism

2. Bilateralism  is the conduct of political, economic, or cultural relations between two  sovereign states . It is in contrast to  unilateralism  or  multilateralism , which is activity by a single state or jointly by multiple states, respectively. When states recognize one another as  sovereign states  and agree to diplomatic relations, they create a bilateral relationship. States with bilateral ties will exchange diplomatic agents such as ambassadors to facilitate dialogues and cooperations. Bilateralism refers to the economic and diplomatic relations between two countries. It involves agreements, negotiations, and collaborations that occur specifically between two nations.

3. Bilateral Trade Agreements: Bilateral trade agreements are deals between two countries aimed at facilitating trade and economic cooperation. These agreements often involve the reduction or elimination of tariffs, quotas, and other trade barriers.

4. Advantages of Bilateralism: Flexibility: Bilateral agreements allow for more flexibility in negotiations, as the terms can be tailored to the specific needs and interests of the two countries involved. Speed: Negotiations in bilateral settings are often faster than in larger multilateral forums, where reaching consensus among many nations can be time-consuming. Specific Focus: Bilateral agreements can address specific issues and industries more directly, leading to targeted economic benefits.

5. Disadvantages of Bilateralism: Exclusivity: Bilateral agreements may exclude other countries, potentially leading to fragmentation of the global trading system. Complexity: Managing multiple bilateral agreements can be complex and may create a web of conflicting regulations and standards. Potential for Imbalances: Bilateral negotiations may result in uneven outcomes, with one country benefiting more than the other.

6. Examples of Bilateral Agreements: Free Trade Agreements (FTAs): Countries negotiate FTAs to reduce or eliminate barriers to trade and promote economic integration. Bilateral Investment Treaties (BITs): These agreements aim to protect and promote investments between two countries. Double Taxation Agreements (DTAs): These agreements address issues related to taxation of income in both countries to avoid double taxation. Bilateral vs. Multilateral Approaches: Bilateralism contrasts with multilateralism, where agreements involve multiple countries. The choice between the two approaches often depends on the complexity of the issues involved and the willingness of nations to work together on a broader scale.

7. Example India and  Nepal  have had a bilateral relationship since ancient times even before the birth of the  Buddha  in 563 BC. In modern times, this traditional relationship has been confirmed by written treaties. The  India-Nepal treaty of friendship  was signed in July 1950. That provided economically and politically important effects for both countries. In 2011, the two countries signed a new Bilateral Investment Promotion and Protection Agreement. These bilateral treaties have played a significant role in the evolution of international investment law. Citizens of both countries can move across the border freely without passport or visa, live and work in either country and own property and business in either country.  Gurkhas  form a part of the Indian Army. Millions of Nepalis have been living in India for long periods of time.

8. Important Points about India’s Foreign Relations India has a dedicated ministry to handle foreign affairs. It is called the Ministry of External Affairs (MEA). India’s External Affairs Minister is S.Jaishankar (31st May 2019 till present). India is a member of the  Commonwealth of Nations . According to MEA, 12.6 million non-resident Indians (NRIs) (Those holding an Indian passport but ordinarily residing outside the country) are spread across more than 200 nations. India has a dedicated examination to recruit candidates in foreign services. The examination is called  Indian Foreign Service Exam . The Indian Foreign Services is headed by the Foreign Secretary. The Indian Foreign Secretary heads all Indian ambassadors and high commissioners. The Foreign Secretary of India is Harsh V Shringla (29th January 2020 till present).