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A concession agreement is a negotiated contract that allows a company to do business with specific requirements. It can refer to a contract between a foreign company and a government, granting the company access to do business in the country. In a second sense, it grants the concessionaire exclusive rights in a specific area in exchange for negotiated terms. The agreement involves concessions from both parties, with the government incentivizing the company through tax breaks, relaxed restrictions, or other benefits. Foreign companies typically negotiate concession agreements with the government of the country where they want to operate.
