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Termites in the Trading SystemHow Preferential Agreements Undermine Free Trade$
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Jagdish Bhagwati

Print publication date: 2008

Print ISBN-13: 9780195331653

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195331653.001.0001

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Why PTAs Are a Pox on the World Trading System

Why PTAs Are a Pox on the World Trading System

Chapter:
(p.49) Chapter 3 Why PTAs Are a Pox on the World Trading System
Source:
Termites in the Trading System
Author(s):

Jagdish Bhagwati

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195331653.003.0003

The worries over preferential trade agreements (PTAs) have increased dramatically in the past two decades as PTAs have proliferated. This chapter discusses the consequences of complexity of the resulting trade regime. The Vinerian concerns about the trade diversion that a PTA can cause have yielded by now to “systemic” concerns about PTAs. The systemic problem from discriminatory trade liberalization under PTAs arises in two ways. The trade-unrelated issues are reported. It is hard to speculate the consequences of PTAs with equanimity.

Keywords:   preferential trade agreements, world trading system, trade liberalization

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