MARITIME ACADEMY OF ASIA AND THE PACIFIC-KAMAYA POINT

DEPARTMENT OF ACADEMICS
Associated Marine Officers’ Seamen’s Union of the Philippines – PTGWO-ITF
Kamaya Pt., Brgy. Alas-asin, Mariveles, Bataan

Midshipman’s Name :
2CL ALFORQUE, KRIZZLE
2CL ALMERIA, BENEDICT FRANZ
2CL ANGELES, REYNAND RENZ
Midshipman’s No. : M-6747
M-6748
M-6755
Name of Instructor : MS. KATHY TOGONON
Name of Assignment/Task Activity: INTERNATIONAL TRADE
AGREEMENT

Date Submitted : 13 SEPTEMBER 2022

Examples of Different Types of Agreement

UNILATERAL AGREEMENT
A unilateral contract is an arrangement wherein the offeror guarantees payment only after
the completion of a certain act. Unanimous agreements are typically used when an offeror has
an open request for which they are prepared to make payment for a specific act. Unilateral
contracts specify an obligation from the offeror. In a unilateral contract, the offeror promises
to pay for specified acts that can be open requests, random, or optional for other parties
involved.
Example
Trade Act of 1974
It is a treaty that benefits only one state, imposed on one nation by another, that has the
potential to aid developing nations’ economies.
The Generalized System of Preferences (GSP), which implemented unilateral trade
policies that benefited the world's poorest countries, was established by the United States
through the Trade Act of 1974. The GSP offers developing countries the chance to expand
their economies through trade and eventually escape poverty.
Over 5,000 imports from more than 120 designated beneficiary states and territories are
exempt from duties thanks to the GSP. 43 of the 122 beneficiary developing countries
(BDCs) are considered to be among the least developed (LDBDCs). 1,500 of the import
 MARITIME ACADEMY OF ASIA AND THE PACIFIC-KAMAYA POINT
DEPARTMENT OF ACADEMICS
Associated Marine Officers’ Seamen’s Union of the Philippines – PTGWO-ITF
Kamaya Pt., Brgy. Alas-asin, Mariveles, Bataan

goods included in the scheme that are duty-free are reserved by LDBDCs. Yemen, Ethiopia,
Haiti, Afghanistan, and Cambodia are among these LDBDCs.
Reference: Project, B. (2020, June 4). What is a unilateral trade agreement? The Borgen
Project. https://borgenproject.org/what-is-a-unilateral-trade-agreement/

BILATERAL AGREEMENT
A bilateral contract is an arrangement in which both parties commit to upholding their
end of the transaction. Although it is not always the case, bilateral contracts often entail an
equal responsibility or consideration from the offeror and the offeree.
EXAMPLE
Trade Investment Framework Agreement
For more than a century, the United States and the
Philippines have enjoyed a close trading relationship. In
accordance with the 1989 bilateral Trade and Investment
Framework Agreement (TIFA), we have frequent
meetings with the Philippines to discuss unresolved
bilateral matters and to coordinate efforts on bilateral,
regional, and global issues. In addition to the TIFA, the United States and the Philippines
have inked agreements on minimum access commitments by the Philippines (2010),
cooperation to eliminate unlawful transshipments of textiles and clothing (2006), and customs
administration and trade facilitation (2010). (1998).
Reference: Philippines. (n.d.). United States Trade Representative. https://ustr.gov/countries-
regions/southeast-asia-pacific/philippines

MULTILATERAL AGREEMENT
A multilateral agreement is a trade pact involving three or more countries. It enables
equal playing time for all signatory nations, often known as signatories. No signatory to this
agreement may offer one country better or worse trade arrangements than it offers another.
EXAMPLE
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
 MARITIME ACADEMY OF ASIA AND THE PACIFIC-KAMAYA POINT
DEPARTMENT OF ACADEMICS
Associated Marine Officers’ Seamen’s Union of the Philippines – PTGWO-ITF
Kamaya Pt., Brgy. Alas-asin, Mariveles, Bataan

The North American Free Trade Agreement

(NAFTA) is an international agreement signed by the
governments of Canada, Mexico, and the United States,
creating a trilateral trade bloc in North America. The goal
of NAFTA is to eliminate all tariff and non-tariff barriers
of trade and investment between the United States, Canada
and Mexico.
The goal of NAFTA was to establish a free trade area between the US, Canada, and
Mexico. The objective was to reduce the amount of bureaucracy required to import or export
goods, making doing business in Mexico and Canada less expensive for American businesses
(and vice versa).
REFERENCE: https://worldpopulationreview.com/country-rankings/nafta-countries
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