Bilateral trade

Bilateral trade or clearing trade is trade exclusively between two states, particularly, barter trade based on bilateral deals between governments, and without using hard currency for payment. Bilateral trade agreements often aim to keep trade deficits at minimum by keeping a clearing account where deficit would accumulate.

The Soviet Union conducted bilateral trade with two nations, India and Finland. On the Soviet side, the trade was nationalized, but on the other side, also private capitalists negotiated deals. Relationships with politicians in charge of foreign policy were especially important for such businessmen. The framework limited the traded goods to those manufactured domestically and as such, constituted a subsidy to domestic industry.

Bilateral trade was highly popular within Finnish business circles, as it allowed the commission of very large orders, additionally with less stringent requirements for sophistication or quality, if compared to Western markets. The Soviet side was motivated to participate in clearing trade because the arrangement essentially provided cheap credit. The option was to sell obligations to the international market, and pay interest in hard currency. Capital, such as icebreakers, train carriages or consumer goods, could be obtained from Finland, and the cost would simply become clearing account deficit, eventually to be paid back as e.g. crude oil, or as orders such as nuclear power plants (Loviisa I and II).

Clearing trade was at its busiest up to the 1970s, but began to lose its momentum in the 1980s. In the last of its years, the Soviet Union's debt began accumulating on an alarming rate into clearing accounts. As a result, the Soviet Union started to pay the deficits with oil, a good with little value added and easily exchangeable to hard currency, which militated against the principle of bilateral trade. With the dissolution of the Soviet Union, this form of trade has mostly disappeared. Bilateral trade is a manifestation of bilateralism; in contrast, multilateralism and in particular multilateral trade agreements became more important.

Strategic goods, such as nuclear technology, are still traded bilaterally rather than in a multilateral open market.

See also

References

  • Juri Piskulov: Näin teimme idänkauppaa. Ajatus-kirjat, Gummerus, 2009.
  • Juhani Laurila: Finnish-Soviet Clearing Trade and Payment System: History and Lessons, Suomen Pankki 1995.
Bangladesh–New Zealand relations

Bangladesh–New Zealand relations refer to the bilateral relations between Bangladesh and New Zealand.

Canada–Singapore relations

Canada–Singapore relations refers to the current and historical relations between Canada and Singapore. Both are full members of the Commonwealth of Nations. In Singapore, Canada is represented by a High Commission. Singapore's Ambassador to the United Nations in New York City is also a non-resident High Commissioner to Canada.

With no embassy or ambassador in Canada, the Honorary Consul General in Vancouver is the diplomatic mission of Singapore in Canada. Until 2014 there was a Consul General in Toronto, but closed with services directed to Vancouver or New York City.These ties are enhanced by the many Canadians who reside in Singapore, and the 83,000 Canadians that visit the city-state every year.The Canadian International School in Singapore was opened in 1990.

China–India relations

China–India relations, also called Sino-Indian relations or Indo-Chinese relations, refers to the bilateral relationship between the People's Republic of China (PRC) and the Republic of India. Although the relationship has been cordial, there are border disputes and an economic competition between the two countries that have at times led to strained relations. The modern relationship began in 1950 when India was among the first countries to end formal ties with the Republic of China (Taiwan) and recognize the PRC as the legitimate government of Mainland China. China and India are the two most populous countries and fastest growing major economies in the world. Growth in diplomatic and economic influence has increased the significance of their bilateral relationship.

Cultural and economic relations between China and India date back to ancient times. The Silk Road not only served as a major trade route between India and China, but is also credited for facilitating the spread of Buddhism from India to East Asia. During the 19th century, China's growing opium trade with the East India Company triggered the First and Second Opium Wars. During World War II, India and China both played a crucial role in halting the progress of Imperial Japan.Relations between contemporary China and India have been characterised by border disputes, resulting in three military conflicts — the Sino-Indian War of 1962, the Chola incident in 1967, and the 1987 Sino-Indian skirmish. In early 2017, the two countries clashed at the Doklam plateau along the disputed Sino-Bhutanese border. However, since the late 1980s, both countries have successfully rebuilt diplomatic and economic ties. In 2008, China became India's largest trading partner and the two countries have also extended their strategic and military relations. Apart from trade and commerce, there are some other areas of mutual interest on which China and India have been cooperating of late. In the words of Rejaul Karim Laskar, a scholar of Indian foreign policy, "Currently, the two countries are cooperating on a range of international like trade, climate change and reform of the global financial order, among others, to promote common interest".Despite growing economic and strategic ties, there are several hurdles for India and the PRC to overcome. India faces trade imbalance heavily in some favour of China. The two countries failed to resolve their border dispute and Indian media outlets have repeatedly reported Chinese military incursions into Indian territory. Both countries have steadily established military infrastructure along border areas. Additionally, India remains wary about China's strong strategic bilateral relations with Pakistan, while China has expressed concerns about Indian military and economic activities in the disputed South China Sea.In June 2012, China stated its position that "Sino-Indian ties" could be the most "important bilateral partnership of the century". That month Wen Jiabao, the Premier of China and Manmohan Singh, the Prime Minister of India set a goal to increase bilateral trade between the two countries to US$100 billion by 2015.Bilateral trade between China and India touched US$89.6 billion in 2017-18, with the trade deficit widening to US$62.9 billion in China's favour. In 2017, the volume of bilateral trade between India & China stands at US$84.5 billion. This figure excludes bilateral trade between India & Hong Kong which stands at another US$34 billion.According to a 2014 BBC World Service Poll, 33% of Indians view China positively, with 35% expressing a negative view, whereas 27% of Chinese people view India positively, with 35% expressing a negative view. A 2014 survey conducted by the Pew Research Center showed 72% of Indians were concerned that territorial disputes between China and neighbouring countries could lead to a military conflict.The President of China, Xi Jinping, was one of the top world leaders to visit New Delhi after Narendra Modi took over as Prime Minister of India in 2014. India's insistence to raise South China Sea in various multilateral forums subsequently did not help that beginning once again, the relationship facing suspicion from Indian administration and media alike.

Ethiopia–India relations

India-Ethiopia relations are bilateral diplomatic relations between India and Ethiopia. It was in July 1948, India and Ethiopia first established diplomatic relations at the level of legations. The relationship was raised to ambassadorial level four years later in 1952. India maintains an embassy in Addis Ababa and Ethiopia in New Delhi. The two countries have enjoyed close and friendly relations with India supporting Ethiopian developmental efforts while Ethiopia has supported Indian interests such as its claim to a permanent seat on the United Nations Security Council. India and Ethiopia share a common understanding on such issues as cross-border international terrorism, the need and direction for reform of the United Nations, and the importance of action on climate change.

Foreign relations of South Korea

The foreign relations of South Korea (officially the Republic of Korea) are South Korean relations with other governments.

The Republic of Korea maintains diplomatic relations with 190 countries. The country has also been a member of the United Nations since 1991, when it became a member state at the same time as North Korea. South Korea has also hosted major international events such as the 1988 Summer Olympics and 2002 World Cup Soccer Tournament (2002 FIFA World Cup co-hosted with Japan) and the 2011 IAAF World Championships Daegu South Korea. Furthermore, South Korea had hosted the 2018 Winter Olympics which took place in Pyeongchang, South Korea from 9th to 25th February.

South Korea is a member of the United Nations, WTO, OECD/DAC, ASEAN Plus Three, East Asia Summit (EAS), and G-20. It is also a founding member of Asia-Pacific Economic Cooperation (APEC) and the East Asia Summit.

On January 1, 2007, South Korean Foreign Minister Ban Ki-moon assumed the post of UN Secretary-General.

Foreign trade of Pakistan

This article covers topics relating to the foreign trade of Pakistan. For a more general overview, see economy of Pakistan.

Germany–India relations

Bilateral relations between the Republic of India and Germany have been traditionally strong due to commercial, cultural and technological co-operation.

India–Italy relations

India–Italy relations refers to the international relations that exist between India and Italy. India maintains an Embassy in Rome, and a Consulate-General in Milan. Italy has an embassy in New Delhi, and Consulate-Generals in Mumbai and Kolkata. The relations are characterized by warmth and friendship.

India–Laos relations

India–Laos relations are bilateral relations between South Asian country India and South East Asian country Laos. Diplomatic relations between two nations were established in February 1956. First Prime Minister of India Jawaharlal Nehru visited Laos in 1954 while first President of India Rajendra Prasad visited Laos in 1956. India considers Laos as strategically important in accordance with the China's growing land-reclamation activities in South China Sea. Laos has been supportive to India's efforts to become permanent member of UN Security Council.

India–Moldova relations

The Indian–Moldovan relations refers to the bilateral relationship between two countries, the Republic of India and the Republic of Moldova. India recognized Moldova at 28 December 1991 and in the following year, both established relations.

Indian embassy to Moldova is accredited from Bucharest, Romania; while Moldova maintains an honorary consulate in New Delhi and a consulate in Mumbai.

Both two countries have taken step to deepen the tie, which is still maintained in a modest level. Both countries have been found supporting each other at many international platforms like the United Nations through reciprocal support mechanism. India-Moldova bilateral trade has been rather modest. During 2012-13 bilateral trade was measured at US$ 9.63 mn (Exports US$ 8.94 mn, Imports US$ 0.69 mn). During 2011-12, bilateral trade reached US$ 8 million (India’s exports were US$ 7.5 mn and imports were US$ 0.5 mn). Recently India has loaned to Moldova in over 5 million rupees to develop its economy.

In 2015, President of India Pranab Mukherjee congratulated Moldova on the National Day of Moldova at August 27.

India–Qatar relations

India–Qatar relations refers to the bilateral ties between India and Qatar. India maintains an embassy in Doha, while Qatar maintains an embassy in New Delhi.

India–Tajikistan relations

The bilateral relations between the Republic of India and the Republic of Tajikistan have developed considerably owing to both nations' co-operation on security and strategic issues. India has set up its first overseas military base Farkhor in Tajikistan. India also assisted in building Ayni hospital.

India–Turkey relations

India–Turkey relations refer to foreign relations between India and Turkey. Since the establishment of diplomatic relations between India and Turkey in 1948, political and bilateral relations have been usually characterised by warmth and cordiality, although some sporadic tensions remain due to Turkey's support for Pakistan, India's rival. India and Turkey are both secular democracies, based on ethnic, religious and linguistic plurality. India has an embassy in Ankara and a consulate–general in Istanbul. Turkey has an embassy in New Delhi and a consulate-general in Mumbai. As of 2015, the bilateral trade between India & Turkey stood at US$6.26 billion & is heavily tilted in India's favour.

Indonesia–Romania relations

Indonesia–Romania relations was established officially in 1950. Indonesia and Romania have agreed to enhance cooperation in the trade sector. The nations are expecting the other to be the gate to enter each regional market: Indonesia as the gate to enter the ASEAN market and Romania as the gate to enter the European Union's. Indonesia has an embassy in Bucharest and Romania has an embassy in Jakarta.

The bilateral trade volume in 2012 was at US$172.67 million with balance in favour of Indonesia with export of US$106.41 million and import of US$66.25 million. Other than trade and economy, the bilateral relations includes culture, education, and technology.

Pakistan–Ukraine relations

Pakistan-Ukraine relations are foreign relations between Pakistan and Ukraine. Pakistan recognized Ukraine's independence in 1991. Diplomatic relations between both countries were established 1992. However, the Pakistan and Ukraine relations were first established before the Ukrainian independence from Soviet Union.

Pakistan has an embassy in Kiev. Ukraine has an embassy in Islamabad and honorary consulates in Karachi and Lahore. Ukraine and Pakistan have been cooperating with each other in educational sectors as well as cultural exchanges. Pakistan and Ukraine also heavily cooperate with each other in aerospace engineering, aerospace technologies, bio-medical sciences and science and technology.

Ukraine also sold Pakistan 320 Ukrainian T-80UD main battle tanks in a deal worth $650 million.

In January - August 2009, the bilateral trade turnover was USD 189.3 million.

Russia–Thailand relations

Bilateral relations between Russia and Thailand date to the late nineteenth century, when the Russian Tsar Nicholas II and King Chulalongkorn of Siam (as Thailand was then known) formed a friendly personal relationship. The two countries exchanged legations in 1897–1898, and signed a Treaty of Friendship and Maritime Navigation in 1899. Diplomatic relations were terminated following the Russian Revolution in 1917, and re-established between the Soviet Union and Thailand on March 12, 1941; Thailand recognized Russian Federation as the successor to Soviet Union on December 28, 1991. Russia has an embassy in Bangkok and two honorary consulates in Phuket and Pattaya. Thailand has an embassy in Moscow and two honorary consulates (in Saint Petersburg and Vladivostok). Both countries are full members of APEC and the Organization for Security and Co-operation in Europe (Russia is a participating state and Thailand is a partner).

South Korea–Thailand relations

South Korea–Thailand relations are the bilateral relations between the Kingdom of Thailand and the Republic of Korea. The two countries established diplomatic relations on October 1, 1958.

During the Korean War, Thailand was the second nation to send troops to support South Korea, just after the United States. In October 2003, South Korean president Roh Moo-hyun visited Thailand, and Prime Minister Thaksin Shinawatra visited Seoul in November 2005.Bilateral trade in 2011 amounted to $13.9 billion in value.

Trade agreement

A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. When two or more countries agree on terms that helps them trade with each other. The most common trade agreements are of the preferential and free trade types are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.

Trade and Tariff Act of 1984

The Trade and Tariff Act of 1984 (P.L. 98-573) clarified the conditions under which unfair trade cases under Section 301 of the Trade Act of 1974 (P.L. 93-618) can be pursued. It also provided bilateral trade negotiating authority for the U.S.-Israel Free Trade Agreement and the U.S.-Canada Free Trade Agreement, and set out procedures to be followed for congressional approval of future bilateral trade agreements.

The bill was sponsored by Democrat Sam Gibbons (FL-7) and was signed into law by President Ronald Reagan on October 30, 1984.

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