The Preferential Trading Agreement Was Introduced To Increase

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. Since the beginning of the 20th century, several hundred bilateral THPs have been signed. The Canada Research Chair in International Political Economy`s TREND project[6] lists approximately 700 trade agreements, the vast majority of which are bilateral. [7] One of the fundamental principles of trade liberalization is non-discrimination under Articles I of the GATT, II of the GATS and IV of the TRIPS agreement. This principle, Most Favoured-Nation (MFN), means that WTO members must not discriminate against their trading partners. Therefore, if a member pays a favour to one member, he must grant the same favour to others. However, as an exception to this principle, paragraphs 4 to 10 of GATT Article XXIV have been introduced. It allows for the creation of an agreement between members, whereby one member can grant more favourable trade terms to other parties to the agreement, not to other WTO members. The enabling clause, which aims to increase the participation of developing countries, was also introduced as an exception to the MFN in favour of developing countries.

It allows the establishment of PTAs for preferential trade agreements between these countries. It is clear from this definition that the current formulation of the provisions of the PTA in the WTO system is not only an exception to a trade principle (MFN), but rather runs counter to the fundamental principles of the organization and that the ptA rules appear to be superior to those of the WTO. It`s true; THE EDPs are a creation of the WTO, but the way they operate makes it comparable to the WTO and even almost superior. PTAs can now be considered „multiplied MCSEs“ in different parts of the world. They sometimes take more restrictive measures than WTO rules. One of the most egregious examples is the more TRIPS measures taken in some bilateral agreements between developed and developing countries. Developed countries negotiate agreements with developing countries that are much more demanding in terms of intellectual property rights (IR) than the WTO TRIPS agreement. If the WTO does not address such situations, the TRIPS agreement could soon be replaced. It is important to act as quickly as possible on these issues, as the delay in the Doha round of multilateral negotiations plays a role in the dissemination of EPZs. A preferential trade zone (including preferential trade agreements, PTA) is a trading bloc that offers preferential access to certain products from participating countries.