**Introduction** Countries should balance bilateral agreements with regional or multilateral commitments by using bilateral deals to address specific trade frictions while keeping the multilateral system as the primary reference point for rules, transparency, and enforcement. The aim is to gain flexibility and speed from bilateral agreements without increasing fragmentation or undermining predictability for trade and investment. **Core policy considerations** **1.** **Keep bilateral agreements consistent with multilateral rules** Bilateral agreements are most effective when they build on existing multilateral commitments rather than replace them. Designing bilateral provisions to remain consistent with World Trade Organization (WTO) rules helps limit discrimination, supports transparency, and preserves a common baseline for trade governance at a time when trade-restrictive measures are becoming more widespread[1][2]. Using familiar WTO concepts and definitions also reduces compliance costs and lowers the risk that bilateral commitments create parallel or conflicting rule systems[3]. **2.** **Align bilateral agreements with regional frameworks where possible** Regional agreements play an important role in limiting rule divergence across multiple bilateral deals. Aligning bilateral commitments with regional standards — particularly for rules of origin, customs procedures, and regulatory cooperation — reduces administrative burden for firms and improves usability of trade preferences[4]. Where regional frameworks already exist, bilateral agreements are most effective when they align with common regional rules, limiting overlap and unnecessary complexity for firms. **3.** **Use bilateral agreements selectively to address clearly defined issues** Bilateral agreements are most effective when used selectively to address issues that remain unresolved multilaterally. Excessive reliance on bilateral approaches can increase fragmentation and compliance costs, especially for smaller firms and developing economies[3]. Predictable and widely shared rules therefore remain important for supporting stable trade and investment outcomes[5]. **Conclusion** A balanced trade strategy treats bilateral agreements as complementary instruments rather than alternatives to regional and multilateral commitments. Bilateral deals are most effective when they address specific gaps, remain consistent with multilateral rules, and align with existing regional frameworks. This helps preserve predictability, limit fragmentation, and support stable trade and investment outcomes in a more uncertain global trade environment.
