What Is The Impact Of Regional Trade Agreementss And Regional Trade Liberalization And Regional Trade Liberalization?

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In examining the latter part of the 20th century and the 21st, it is interesting to note the regional trade agreements and global trade liberalization and the changes that have occurred. Regional trade agreements and global trade liberalization have experienced many changes in policy which have been strongly debated amongst economists and politicians, alike. The argument concerns which approach is an appropriate strategy for differing countries around the world and globally effective, as well.
Impact of Regional Trade Agreements
Trade liberalization and trade discrimination are both impacted by regionally based trade agreements. Many governments throughout the world are currently engaged in the creation of regional trade agreements. During …show more content…

Developing countries benefit most from regional trade agreements as they are offered more protection and opportunity within this regulation. Many studies have proven that countries with less of a trade barrier situation tend to grow at a faster rate. It could be possible, though, that developing countries with less opportunity can grow at a more reasonable rate resulting in a positive long term result and more stable environment for success in global trading. Evidence shows many third world countries have experienced steady growth over a ten year time span while operating under a free trade agreement. This may have set the country up for future success and slow and steady growth. More developed nations have had the opposite experience within a regional trade agreement situation. Over a ten year time span, more developed nations have seen a decline in growth where regional trade agreements are present. “There are good reasons to believe that the effect of broad liberalization on growth will be higher in the decades to come”, and “the benefits of trade liberalization depend positively on the openness of the world economy”(Vamvakidis, Anthanasios, 1999). In the future, liberalization policies could be improved by an increased education and analysis around the reasons countries would need to protect their trade environments in the first place and why certain countries are reluctant to eliminate trade barriers even though some research show the success rates of free trade situation. Looking forward, “regional and bilateral free trade agreements are the best vehicles to liberalize commerce (Bandow, Doug, 2013)”. Utilizing as much of a free trade agreement and/or global trade liberalization as possible could create economic growth and

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