Free Trade Deals Undermine Global Cooperation, Threaten Developing Nations
Regional trade agreements like free trade areas can actually harm the global trade system by making countries outside the agreement lose out on benefits. When countries form a free trade area, they tend to lower trade barriers with each other, which boosts trade among them. However, this can also make it harder for countries not in the agreement to benefit from global trade deals. This can lead to those countries being less supportive of worldwide trade agreements. This is more likely to happen when governments listen more to special interest groups.