Essay on Regional Trade Agreements vs. Global Trade Liberalization

Essay on Regional Trade Agreements vs. Global Trade Liberalization

Length: 1193 words (3.4 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Regional Trade Agreements vs. Global Trade Liberalization

There is much debate concerning regional trade agreements and global trade liberalization. Pros and cons can be found for each trade policy. After looking at several arguments for and against regional trade agreements, it seems that overall regional trade agreements are more beneficial when compared to global trade liberalization.
A regional trade agreement is “where member nations agree to impose lower barriers to trade within the group than trade with nonmember nations,” (Carbaugh, p 529). Regional trade agreements don’t affect each nations domestic policies, it only creates increased trade and relations among certain nations. This type of trading system complements multilateral trading.
Even though there are numerous positives to regional trade agreements, there are negatives as well. “Regional trading groups strengthen trade and the benefits thereof with groups but at the same time may serve to undermine free trade globally by implicitly and explicitly discriminating against trade with countries outside the groups (Colorado State University-Global Campus).” Carbaugh also notes this in his textbook, International Economics. He states that discrimination against other nations, not in the trade agreement, strays from the principles of normal trading relations, a major initiative of the World Trade Organization.
On the flip side, there are numerous positives that outweigh the negatives found with regional trade agreements. In the article, Regional trade agreements versus global trade liberalization: implications for a small island developing state, by Asafu-Adjave and Mahadevan, found that full trade liberalization created the best outcomes when it comes to r...


... middle of paper ...


...posed against non-member nations. While her study was unable to give a definite answer as to whether preferential trade agreements help or hurt un-associated countries, she did determine that goods having large deductions in preferential tariffs to participating countries impose the highest tariffs to non-participating countries.

Zeng, K. (2010). Multilateral versus bilateral and regional trade liberalization: explaining China's pursuit of free trade agreements (FTAs). Journal Of Contemporary China, 19(66), 635-652. doi:10.1080/10670564.2010.485400
Zeng discusses how China used the regional approach to trade liberalization by creating free trade agreements with their trading partners. This resulted in China experiencing greater influence in the Asia-pacific region. In addition, China’s choice to utilize FTAs created alternative bargaining over trade issues.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Regional Trade Agreement

- The political force moved away from the painstakingly and time-consuming technique of multilateral tariff negotiations to smaller regional and bilateral provisions - the Regional Trade Agreement. In these arrangements; members accord preferential treatment , basically agreeing to liberalize the exchange of goods and services amongst each another giving regard to certain trade barriers. RTA is not the first-hand way of trade liberalization though. Initially, when multilateral trade discussions used to happen, two-sided and multiparty FTA”s filled the vacuum....   [tags: barriers, liberalization, free, trade]

Strong Essays
2292 words (6.5 pages)

Measuring the Effect of Regional and Preferential Trade Agreements on Multilateral Trading Systems

- Introduction World trade has been an ever evolving phenomenon and the agreements made to govern this have also been evolving. In order to stabilise and centralise trade agreements, multilateral trading system came into being and people thought that this is an ultimate solution to facilitate trade among different nations and take care of any issues emerging thereby. As the time passed by, many countries started to feel the need to have a close agreement within a concentrated setting and as a result regional trade agreement (RTA) and preferential trade agreements (PTA)....   [tags: World Trade Organization, Global Superpower]

Strong Essays
3415 words (9.8 pages)

Trade Agreements Between the European Union and Developing Countries Essay

- The Uruguay Round Agreements and the establishment of the World Trade Organisation, have strengthened the Multilateral Trading. At the same time, there has been more agreements in the world economy. The European Union has been major driving force behind the force of such agreements This report evaluate and explores the complex structures of recent free trade agreements between the European Union and developing countries, the main factors determining their economic effects, and presents quantitative simulations of the effects of these agreements....   [tags: market barriers,world economy, free trade]

Strong Essays
2052 words (5.9 pages)

Preferential Trade Agreements Essay

- International Trading Blocs Preferential Trade Agreements (PTAs) Preferential Trade Agreements or trading blocs are a form of economic integration in which countries agree to create a free trade area or some form of common market to facilitate trade. This agreement can be in different forms and depths, for instance there is Free Trade Area is a trading bloc that has no tariff, then Custom Union is where there is common level of trade barriers, in Economic unions such as European Union, the member countries have open national policies and a common currency (Euro)....   [tags: International Finance ]

Strong Essays
1452 words (4.1 pages)

The World Trade Organization (WTO) Essays

- ... They also agreed to mutually have control over food production so that everybody had enough to eat. • 1980-1989 In 1981, Greece becomes the tenth member of the EU and Spain follows soon after. In 1986 the Single European Act is signed which intended at arranging out the problems with the free flows of trade between Eu countries. In 1989, the Berlin Wall was demolished and the border for East and West Germany are opened which later are united in 1990. • 1970-1979 Denmark, Ireland and United Kingdom join the EU raising the number to nine....   [tags: rules, trade, goal, services, business]

Strong Essays
2642 words (7.5 pages)

Globalization and Regional Institutions Essay examples

- In the field of human rights, the issues surrounding globalization are widely debated. Some argue that globalization is a scourge that destroys the unique and multifaceted cultures of the world; while others argue that it spreads universal ideals, such as the concept of human rights. Regional organizations fit into the idea of globalization by creating unifying ties between nations; sharing values, trade, and promoting a strengthened identity. The two most well-known and influential regional organizations are the European Union (EU), and the North American Free Trade Agreement (NAFTA)....   [tags: international relations, human rights]

Strong Essays
1121 words (3.2 pages)

Essay about The World Trade Organization

- The World Trade Organization Nobody will deny if I say that in our modern world it is very important to control the relationship between different countries. There are different organizations nowadays. They control different aspects of our everyday life. I would like to speak about world trade organization. It deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. First of all I would like to give some facts about the creation and location of WTO....   [tags: WTO World Trade Organization]

Free Essays
1741 words (5 pages)

China: Pros and Cons of the Regional Comprehensive Economic Partnership Part 1

- Introduction Many countries look to import and export their goods or services they produce in their country in order to increase gross domestic product (GDP) or to obtain the product at a cheaper price. The Regional Comprehensive Economic Partnership (RCEP) is a partnership agreement that will expand the free trade region in the major Asian countries and increase the benefits. The Association of Southeast Asian Nations (ASEAN) is the sole carrier of the RCEP which plans on integrating the “Plus six”, partners China, Australia, Japan, India, New Zealand and South Korea in order to achieve the expansion of free trade....   [tags: emmergence of super powers]

Strong Essays
2443 words (7 pages)

Foreign Workers Seek Indonesia Essays

- JAKARTA, KOMPAS.com – the launching of free trading pact between ASEAN and the six countries in Phnom Penh area, Kamboja, Tuesday (20/11/2012), including services sector. Foreign workers from the countries joining in this pact have a desire to work in ASEAN countries, including Indonesia. Free trading pact which is called Regional Comprehensive Economic Partnership, launched on the last day of High Level Conference ASEAN 21th in Phnom Penh, 15-20 November. Kompas journalists, FX Laksana Agung Saputra, Wisnu Dewabrata, and C....   [tags: Regional Comprehensive Economic Partnership]

Strong Essays
785 words (2.2 pages)

Free Trade Agreement (FTA) Essay

- FTA The trade is one of important part of economy. We cannot imagine without trade on economy. When we started trade we might have lots of problems among the countries, so we need to have duties and regulations for the problems. Fro the solve problem we established organizations and agreements. The all over the world the each country joined one or more the trade organizations. One biggest organization is WTO (World Trade Organization). The 136 countries joined to WTO right now. The principle of WTO is Most-Favoured-Nation Treatment: Treating other people equally under the WTO agreements....   [tags: Essays Papers]

Strong Essays
1058 words (3 pages)