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COMPAQ

Trade Agreements : A Brief
A Unilateral Trade agreement is a trade treaty or trade agreement that is usually
designed by one country to be ratified by another. It is not bi-lateral i.e. both
countries do not sign a “quid pro quo” trade agreement. It is often used as an
instrument to aid a developing country or a country in need or to impose sanctions
on another country. (Fredette, 2017)
Figure 1 example of Unileral Trade Agreement. Prepared by Author
Unilateral Trade agreements are the reason. The United States Establishes a
generalized system if Trade Agreements, most of which were unilateral , in order to
help developing countries. (Fredette, 2017)
Unilateral Trade Agreements could have both pros and cons. They can be
instruments of development in developing countries and an alternative to aid. They
can help improve the markets of a developing country by providing export
opportunities for the country. However, given that such trade agreements are
signed without the compulsion of a “quid pro quo”, they can be ‘circumstantially
advantageous’ to one party, (Fredette, 2017) and may not provide proportionate
benefits to the other.