Regional Trade Agreement MeaningHungcp
The procedure against the ATRs focuses on this discriminatory character, which runs counter to the fundamental principle of the post-war trading regime. Some countries may be excluded from ATRs because others do not see them as large enough markets to justify the investment of bureaucratic resources needed to negotiate and implement agreements. Similarly, countries that are not considered reliable partners because of the nature of their political systems should be excluded. These concerns apply in particular to smaller, less developed economies. In addition, political factors can play a major role both in influencing the choices of potential partners and in determining the outcome of the negotiations. For the weaker countries, the main advantage of the post-war multilateral trading regime was to move political considerations far away from trade issues. RTAs also open the door to considerations of power to dictate the terms of agreements. Studies of the recent wave of ATR have shown that less developed countries have made more concessions than industrialized countries in regional partnerships involving countries at different levels of development. WTO members are allowed to conclude the RTA under certain conditions, defined in three sentences. These rules include the creation and operation of customs unions and free trade zones for trade in goods (Article XXIV of the 1994 General Agreement on Tariffs and Trade), regional or comprehensive agreements for trade in goods between developing countries (empowerment clause) and trade agreements on services (Article V of the General Agreement on Trade in Services). In general, ATRs must essentially cover all trade – unless they are subject to the enabling clause – and make trade between RTA countries freer without increasing trade barriers with the outside world. There are three different types of trade agreements.
The first is a unilateral trade agreement if one country wants certain restrictions to be enforced, but no other country wants them to be imposed. It also allows countries to reduce the amount of trade restrictions. It is also something that is not common and could affect a country. Regional trade agreements are multiplying and changing their nature. In 1990, 50 trade agreements were in force. In 2017, there were more than 280. In many trade agreements, negotiations today go beyond tariffs and cover several policy areas relating to trade and investment in goods and services, including rules that go beyond borders, such as competition policy, public procurement rules and intellectual property rights.