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The Race For Preferential Trade Agreements –Causes, Patterns And Effects

Author

Listed:
  • Agnes GHIBUŢIU

    (Institute for World Economy of the Romanian Academy)

Abstract

Over the last decade, members of the World Trade Organization (WTO) have increasingly turned towards negotiating preferential trade agreements (PTAs) as a means for achieving improved market access for exports of goods and services, and investment. In particular, the year 2013 witnessed a remarkable revival of the regional trade agenda, with numerous new PTA negotiations being launched, including by WTO members accounting for substantial shares of world GDP and global trade and investmen – the so-called ”mega-PTAs”. While PTAs are not new to the WTO system, striking is however the fresh impetus to regionalism worldwide, which manifests itself not only in the steep numerical rise, but also the unprecedented pace and scale of new PTA initiatives. Against this backdrop, this paper addresses several key issues related to the new active phase of regionalism from the perspective of the multilateral trading system governed by the WTO. It first looks at the systemic factors underlying the unabated drive towards PTAs among WTO membership, and distils the rationale behind the current surge in regionalism. Second, it examines the patterns of new PTAs and evidences the qualitative differences vis-à-vis previous PTAs in terms of scope, composition and depth. Finally, it discusses the economic and geopolitical factors driving the new PTAs, and highlights some of the potential effects upon the world trading system and global trade patterns.

Suggested Citation

  • Agnes GHIBUŢIU, 2015. "The Race For Preferential Trade Agreements –Causes, Patterns And Effects," Romanian Economic Business Review, Romanian-American University, vol. 10(2), pages 9-28, June.
    • Handle: RePEc:rau:journl:v:10:y:2015:i:2:p:9-28
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU15/REBE-SU15-A1.pdf
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    References listed on IDEAS

    as
    1. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    2. Arvind Subramanian & Martin Kessler, 2013. "The Hyperglobalization of Trade and Its Future," Working Paper Series WP13-6, Peterson Institute for International Economics.
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