Global Trade Landscape Transformed as Preferential Agreements Surge, Challenging Multilateral System
Regional Trade Agreements (RTAs) have become more popular in global trade, with many countries using them to make trade deals instead of relying on multilateral agreements. This approach has both benefits and drawbacks. While RTAs can help grow trade and improve developing economies, they can also create unfair trade conditions and make international trade rules less clear. The article provides an update on the increase in RTAs and the possible consequences for the global trade system. It categorizes different types of RTAs and discusses how they may affect the fairness and predictability of international trade. The research shows that balancing RTAs with multilateral trade agreements is crucial to ensure a fair and transparent global trading system.