WTO Fails to Boost Successful Trade Deals, Unnotified Pacts Thrive
The study looked at whether the World Trade Organization (WTO) has helped regional trade agreements (RTAs) succeed. They found that when two countries in an RTA are also WTO members, trade increases. However, the boost in trade is much bigger when both countries are in the WTO. This suggests that the WTO has helped make global trade easier, even outside of RTAs. Surprisingly, RTAs that are not officially reported to the WTO actually trade more than those that are reported.