(wl-2551)-Preferential Trade Agreements: Building Blocks Than Stumbling Blocks

Preferential trade agreements (PTAs) are a prevailing characteristic of the international trading landscape, with almost all countries in the world having been participants. These agreements, which vary in scope and complexity, provide a pathway for countries, regardless of their development level, to engage in global trade more effectively. Developed nations, on the other hand, use PTAs to address issues beyond the World Trade Organization (WTO) mandate. This article argues that PTAs are building blocks for the multilateral trading regime because they are inclusive, promote internalisation of internationally accepted norms and standards and decrease protectionist tendencies. Furthermore, PTAs serve as experimental platforms, promote transparency and dispute resolution, aligning with WTO rules while addressing new regulatory challenges. Despite criticisms of PTAs as "second best," they play a crucial role in advancing global trade, offering a complementary approach to multilateral agreements, and potentially leading to a more inclusive and resilient trading system.