The role of regional trade agreements in the global economy

Regional and sub-regional groups having an integrative character appeared after the war and they aimed at harmonizing their economic policies, and, at the same time, they ensured, in accordance with the agreed degree of integration, free turnover of goods, products, services, capitals and labor force. By setting up these international economic organizations, the states of the world and especially developing countries wanted to improve their efforts for a sustained economic growth, to counteract the effects of the unequal external affairs and to eliminate underdevelopment. Some of the regional agreements that represent the new regionalism have been motivated politically and they were stimulated by the conviction that good agreements do not necessarily stand for good neighbors. Such agreements consolidate good diplomatic practices and their objective is to reduce the inevitable confrontation that may appear as a result of commercial disputes that interfere at the border.