An agreement negotiated by two countries that places a numerical limit on the quantity of a certain product or resource is commonly referred to as a quota. Quotas are used in international trade to regulate the flow of goods between countries, and they can be an effective tool for balancing the interests of both importing and exporting countries.

In general, quotas are established to limit the amount of a particular product that can be imported into a country. This is typically done in order to protect domestic producers from foreign competition, or to address concerns about the impact of certain products on public health, the environment, or other social factors.

For example, a country might impose a quota on the import of steel from a particular country in order to protect its own steel industry from foreign competition. Similarly, a country might impose a quota on the import of certain drugs or chemicals that are known to be harmful to public health or the environment.

Quotas can also be used to limit the amount of a certain product that can be exported from one country to another. In this case, the goal may be to ensure that domestic supplies of the product are maintained, or to avoid creating an imbalance in the global market for the product.

Negotiating a quota agreement between two countries can be a complex process that involves a wide range of factors. These may include the economic interests of both countries, the political and social implications of the agreement, and the specific details of the products or resources being regulated.

One of the key considerations in negotiating a quota agreement is determining the appropriate numerical limit to place on the product or resource in question. This may involve assessing the demand for the product in each country, as well as the availability of domestic sources of the product.

In addition to establishing a numerical limit, quota agreements may also include provisions for monitoring and enforcing the agreement. This may involve setting up systems for tracking the flow of products across borders, as well as penalties or other consequences for countries that violate the terms of the agreement.

Overall, quota agreements can be an effective tool for managing international trade and protecting the interests of both importing and exporting countries. However, they must be carefully negotiated and implemented in order to ensure that they achieve their intended goals without creating unintended consequences or negative effects on the global economy.