Why Are Regional Trade Agreements Becoming More Popular

Regional trade agreements (RTAs) have increased in number and scope over the years, including a significant increase in the large plurilateral agreements under negotiation. Non-discrimination between trading partners is one of the fundamental principles of the WTO; However, RTAs, which are reciprocal preferential trade agreements between two or more partners, are one of the exceptions and are allowed under the WTO subject to a number of rules. Information on RTAs notified to the WTO is available in the RTA database. Regional trade agreements (“RTAs”) have become a fundamental mode of international trade negotiation and regulation. The further dismantling of tariff and non-tariff barriers to trade and general cooperation among nations on trade issues are currently being negotiated mainly within the framework of RTAs. As a result, the number and scope of RTAs since the early 1990s has been unprecedented due to the stagnation of global trade negotiations. However, maximizing overall wealth is not Caruso`s goal. Caruso`s goal is global justice and more global equality. It fears that the diversion of trade is contrary to the “progressive distribution of resources”.

It advocates remedial measures for trade diversion from the perspective of the countries of the South. [35] Developing countries excluded from RTAs are at risk of trade and competitiveness losses. If RTAs redirect trade flows, these countries could also make it more difficult to access capital and technology. [36] To the extent that RTAs go beyond WTO commitments and remain open to additional participation by countries that commit to complying with their standards, they can complement the multilateral trading system. Over the years, the OECD has examined the relationship between regional trade agreements and the multilateral trading system, including with regard to specific policy areas addressed in RTA provisions, such as the treatment of agricultural issues, technical regulations, standards and conformity assessment procedures, investment provisions affecting international technology transfer, the evolution of the integration of environmental considerations and approaches to market opening in the digital age – to name a few. [1] See Christian Riffel, Mega-regionals, in Max Planck Encylopedia of International Law (2016), opil.ouplaw.com/view/10.1093/law:epil/9780199231690/law-9780199231690-e2177. The potential positive impact of RTAs on economies is highly controversial. [2] Because of their immense scope and depth, RTAs have been called “mega-regional arrangements” and raise concerns about democratic governance, legality and economic distribution. In addition, RTAs exclude third parties, raising concerns from a global justice perspective. Operators, including entire countries excluded from agreements concluded by other parties, may encounter economic difficulties as a result of the diversion of trade caused by these agreements.

Various approaches were used. While results inevitably vary depending on methodology, time period, trade bloc in question, and degree of data aggregation, the large number of studies examining trade creation and trade diversion into RTAs around the world gives two general messages: RTAs include the North American Free Trade Agreement (“NAFTA”), the Regional Comprehensive Economic Partnership (“RCEP”) between the Southeast Asian Association. Nations (“ASEAN”), the planned Trans-Pacific Partnership (TPP) between twelve Pacific Rim countries, the Canada-EU Comprehensive Economic and Trade Agreement (“CETA”), the planned Transatlantic Trade and Investment Partnership (“TTIP”) between the United States and the European Union, which is estimated to account for nearly half of global GDP, and others. TTIP and CETA only affect advanced economies, while RCEP and TPP are trade agreements between developed and developing countries. [1] As a starting point for its analysis, Caruso uses the private law assumption that any sale of goods – a contract between a particular seller and its customers – takes assets away from that seller`s competitors under regional trade agreements. [43] In short, they redirect trade from non-participants to participating countries. [44] It is assumed that the resulting harm is contrary to the concerns of the judiciary and the progressive allocation of resources. [45] It is therefore necessary to find corrective measures to accommodate non-parties. Nor should your own thinking be guided by the assumption that participation in a transaction such as an RTA is beneficial and that exclusion from participation is harmful. .