How do regional trade agreements fit in the WTO framework? Can these agreements go against WTO agreements?
Under its charter, the WTO does not approve or disapprove of any regional trading agreements and does not get involved in any regional trade association disputes. Yet, the WTO agreements recognise that regional arrangements and economic integration of neighbouring countries can benefit countries, so it permits preferential trade agreements between its members as long as they facilitate trade between their constituent countries, and are trade-creating not trade-limiting. And, of course, such agreements should not raise trade barriers with other WTO members. All such regional agreements, which frame some kind of preferential treatment, must be submitted to the WTO that can recommend changes after which it can it be put into force. So far over 100 regional trade agreements have been accepted, including ASEAN and SAARC. How are disputes settled in the WTO? What happens if a country does not abide by a WTO agreement? Each WTO member has the right to fight back when its trading interests are
Related Questions
- Can bilateral and plurilateral trade agreements continue to exist under the WTO and does the WTO control such agreements?
- Are there differences in the way that services are treated in trade agreements at the multilateral and regional levels?
- How do regional trade agreements fit in the WTO framework? Can these agreements go against WTO agreements?
