Global return swaps are available in different variants. We will first describe the most basic form. Like other OTC derivatives, a TRS is a bilateral agreement that defines certain rights and obligations for the parties involved. In the particular case of the TRS agreement, these rights and obligations focus on the realization of a reference asset. At the regional level, many legal and political documents have been signed between China and ASEAN, including the TACs, the ACFTA framework agreement, etc. Several important documents, including the 1994 exchange of letters, the 1997 Joint Declaration, the 2002 Framework Agreement on Global Economic Cooperation, the 2002 Joint Declaration on Non-Traditional Security Cooperation, the 2002 Declaration on the Behaviour of the Parties in the South China Sea and the Joint Declaration of the 2003 Strategic Partnership serve as a legal basis for the development of their bilateral relations. Thanks to these documents, China and ASEAN are able to develop their cooperative relations smoothly and quickly. Most importantly, China joined the TAC in October 2003, the first non-ASEAN country to join the treaty. China became ANASE`s advisory partner in 1995 and ASEAN granted China dialogue partner status in July 1996. In October 2003, at the ASEAN-China Summit, the two sides adopted the joint declaration of the Heads of State and Government of the Association of Southeast Asian Nations and the People`s Republic of China on the Strategic Partnership for Peace and Prosperity, which revived China-ASEAN relations. Relevant dialogue and cooperation mechanisms have been put in place: the ASEAN-China summit, 10 at ministerial level and 5 at the operational level. According to a Chinese scholar, the establishment of cooperation relations between China and ASEAN was « legally formalized » by the exchange of letters between the ASEAN Secretary-General and the Chinese Foreign Minister on 23 July 1994 and it was agreed to establish the Joint Committee on Economic and Trade Cooperation and the Joint Committee on Scientific and Technological Cooperation56. the achievement of preferential agreements is only desirable if it is not an obstacle to liberalisation, but it promotes liberalisation.

Indeed, the fourth risk of regionalism is that extensive practice is difficult to work on broader trade agreements. The more comfortable countries feel in their group of partners, the less likely they are to become global. In other jurisdictions, the courts have merely expressed a preference for the interpretation of contracts as the creation of bilateral obligations in all cases where there is no clear evidence of the intent of a unilateral treaty. The rule is that if in doubt, it is assumed that an offer invites the formation of a bilateral contract by committing to meet the requirements of the offer, instead of entering into a unilateral contract beginning at the time of the actual benefit. The key in most legal systems is that courts, faced with a growing diversity of factual models relating to complex contractual disputes, have moved from the rigid application of the concepts of unilateral and bilateral treaties to a more ad hoc approach. Bilateral agreements can often trigger competing bilateral agreements between other countries. This may despise the benefits of the free trade agreement between the two original nations. The United States has signed bilateral trade agreements with 20 countries, including Israel, Jordan, Australia, Chile, Singapore, Bahrain, Morocco, Oman, Peru, Panama and Colombia. Bilateral agreements increase trade between the two countries. They open markets to successful sectors.

If companies take advantage of it, they create jobs.