This article demonstrates how preferential trade agreements support the multilateral trading regime, highlighting their role in promoting transparency and reducing protectionism.
Key Points
Preferential trade agreements are essential for advancing global trade by acting as building blocks rather than stumbling blocks.
PTAs foster the internalisation of internationally accepted norms and standards while decreasing protectionist tendencies found in global trade.
These agreements provide a platform for transparency and dispute resolution, making them compatible with WTO regulations.
Though criticized as 'second best', PTAs complement multilateral agreements and potentially enhance the inclusiveness of the trading system.