The multilateral trading system and preferential trade agreements : can the negative effects be minimized?
- Preferential trade agreements pose a big challenge for the multilateral trading system. Throughout the first decade of the twenty-first century, their number has grown significantly. However, these agreements have a range of disadvantages compared with the multilateral regime, for example, in trade facilitation and in dispute settlement. Whereas it will be difficult to stop the further spreading of this wave of preferential agreements, attempts can be made to reduce the negative effects of trade agreements that do, by definition, discriminate against other countries. In this article, a range of potential remedies are discussed, from a moratorium to the better enforcement of World Trade Organization rules on preferential agreements as well as improved monitoring.
