Preferential Trade Agreements Discrimination

Preferential Trade Agreements Discrimination

Figure 2. Many agreements with WTO provisions – Deep integration can bring a trade-off between the benefits of common policies and the cost of harmonization if political preferences vary from one Member State to another. Deep integration reduces trade costs and offers common benefits such as common rules and a stable monetary system that the market or national governments do not offer. Deep integration in advanced economies can also bring benefits to developing countries by providing institutions of good practice. However, costs can be linked if common rules are removed from national preferences and the needs of developing countries. Trade in the 21st century, as defined by Baldwin (2010), is a much more complex phenomenon than pre-trade in the early 1980s. The increase in international production networks is a testament to the complementarity between trade and governance, which is at the heart of successful in-depth agreements. To ensure the smooth operation of cross-border production networks, it is necessary to harmonize or make compatible certain national policies in order to facilitate activity in several countries (see Lawrence 1996). Empirical evidence2 and case studies presented in the report support this link between production networks and deep EDPs. It must be acknowledged that one of the reasons for the introduction of GATT Article XXIV, the increasing liberalization of trade and trade flows among WTO members, is now being fulfilled. The results indicate that global preference agreements have multiplied and that PTAs have created more businesses than they have hijacked. The release of the EPZs today justifies this assertion. In East Asia, for example, it is argued that free trade agreements with free trade agreements have strengthened trade between companies, despite concerns about restrictive rules of origin.

However, it should not be understood that trade between developing countries is not encouraged. My point is that these countries need to put their development goals above their regional commitments. Developing countries need machinery, foreign direct investment (FI) for the exploitation and transformation of their natural resources. I do not see how another developing country will help in this case. Developing countries should negotiate trade agreements with developed countries capable of investing in the exploitation and transformation of the developing country. The WTO can help secure an agreement on trade in natural resources that protects investors, human rights and the environment and deter heads of state and government in developing countries from transforming the principle of sustainable sovereignty over natural resources into the principle of personal sovereignty over natural resources. This would allow the organization to establish a fair trade in natural resources, which means that natural resources should not be purchased from countries where heads of state and government are corrupt. ATPs between developing and industrialized countries could contribute to the implementation of these measures. Keywords: the WTO, the Doha Round, preferential trade agreements, regionalization of trade diversion mean that free trade agreements divert trade from a more efficient supplier, a non-member, to a less efficient supplier under the free trade agreement.