Bilateral trade deals can ease trade liberalization pains for all
A free-trade agreement with specific rules can help make up for the downsides of opening up trade between countries. By looking at how different countries set their tariffs, researchers found that having a deal where tariffs are set in a way that balances out can lead to benefits for everyone involved. This kind of agreement can also make it easier for countries to follow the rules of global trade. The study also showed that governments are willing to work together to make these agreements happen, even if it means less support from certain business groups in the long run.