Question

in what way can regional trading agreements actually decrease free trade?

Answer 1

Regional trade agreements are the agreements designed by World trade organization (WTO), they are known to be mutual trade agreements between two or more partners. Free trade unions and custom unions are part of Regional trade agreement (RTA). The main motive of establishing RTA was to liberalize trade and it’s in favor of both trade expansion and trade discrimination. Trade discrimination occurs when commodity produced at lower cost is substituted for cost commodities at high price within the trade district.