Question

Explain and elaborate the reasons of the recent increase in the Regional Trade Agreements. (This information is included in Part II of the WTO report).

Answer 1

Regional Trade Agreement cover more than half of International trade and operate alongside global multilateral agreement under the World Trade Organiszation. Regional Trade Agreement can have positive or negative effects depending on their design and implementations. The ever growing number of regional trade agreements aand prominent feature of international trade.Regional trade agreements are defoined as reciprocal trade agreements are defined as reciprocal trade agreements between two or more partners. They include free trade agreements and customs unions. Major objectives behind Regional trade agreements is trade liberalization.

Reasons behind growth of Regional Tade Agreements are:

a) Lower Tariff and Non Tariff Barriers.

b) Deeper regional economic integration.

c) Expansion of Export.

d) More investments and Jobs.

f) Prefrential treatment and duty free access.