POLS 3790 Lecture Notes - Lecture 20: Unilateralism, Trade Agreement, Trade Diversion
25 Mar 2017
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Document Summary
Regional trade agreement: are the most important exception that the wto permits to the principle of non-discrimination, and about half of world trade is conducted within regional trade agreements. A process of intergovernmental collaboration between two or more states. Know the difference between: ftas, customs unions, common markets and economic/monetary unions. Regionalism involves books, data and is very technical. Trade can increase under rtas through either trade creation or trade diversion (more controversial) Costs of transacting agreements could be lowered if states pursued single agreement with large numbers of states instead of undertaking a series of negotiations with individual states or small groups. Regionalism as a mechanism for locking in reforms. The relative ease of negotiating and implementing regional agreements. Regionalism can enable continuing protection of "inefficient" sectors. Regionalism can provide opportunities for deeper integration - cooperation that goes beyond the traditional liberalism "menu" of removing tariffs and ntbs removing tariffs and ntbs.
