“A gentleman`s agreement or gentlemen`s agreement is an informal agreement in which people trust each other to do what they promised.” Despite its informal nature, the breach of a gentlemen`s agreement could have a negative impact on trade relations if a party decides to break its promise. A gentlemen`s agreement can also be called a “gentleman`s agreement” and can be concluded by a handshake or not. A U.S. House of Representatives report, detailing its investigation into the United States Steel Corporation, asserted that in the 1890s there were two general types of loose associations or consolidations between steel and steel interests in which companies retained ownership and a high degree of independence: the “pool” and the “gentleman`s Agreement.”  The latter type does not have a formal organisation for the regulation of production or prices or provisions on forfeiture in the event of infringement.  The effectiveness of the agreement was based on the fulfilance of informal commitments made by members.  Sometimes, when the parties know each other very well, it may even be a non-verbal agreement. The agreements were reached by US Secretary of State Elihu Root and Japanese Secretary of State Tadasu Hayashi. .