Economic theory suggests that bilateral agreements such as the free trade agreement will lead to the creation of trade between the parties directly concerned, but that they will also lead to trade diversions from third countries, thus offsetting possible benefits. Bilateral agreements can also undermine multilateral agreements related to the World Trade Organization. Partly because of these factors, the utility estimates made by the CIE and cited by the government have been challenged by most economists who have contributed to this issue in Senate committees, some of whom have concluded that the agreement would reduce Australia`s economic well-being. The Australia-United States Free Trade Agreement (AUSFTA) is a preferential trade agreement between Australia and the United States, modeled on the North American Free Trade Agreement (NAFTA).