Full integration of Member States is the last level of trade agreements. The United States has another multilateral regional trade agreement: the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua eliminated tariffs on more than 80% of U.S. non-textile exports. Negotiations to clarify and improve WTO disciplines with respect to the RTA are part of the work of the Rules Negotiation Group, which reports to the Trade Negotiations Committee. Regional trade agreements (ATRs) have multiplied over the years and have achieved, including a significant increase in major multilateral agreements being negotiated. Non-discrimination between trading partners is one of the fundamental principles of the WTO; However, reciprocal preferential agreements between two or more partners are one of the exceptions and are allowed by the WTO subject to a number of provisions. Information on WTO-notified ATRs is available in the RTA database. So far, you have seen international organizations such as the WTO, the IMF and the World Bank support world trade, but that is only part of history. Where world trade really has a boost, there are trade agreements (also known as trade blocs). This is where the term “global economic integration” takes its feet – the process of changing barriers between nations and between nations to create a fully integrated global economy. Trade agreements differ from the level of free trade they allow between members and non-members; everyone has a unique level of economic integration. We will examine four: the Regional Trade Agreement (RTA) (also known as the “free trade area”), a customs union, common markets and economic unions.
Once negotiated, multilateral agreements are very powerful. They cover a wider geographic area, giving signatories a greater competitive advantage. All countries also give themselves the status of the most favoured nation – and grant the best conditions of mutual trade and the lowest tariffs. A free trade agreement removes all barriers to trade between members, which means they can move goods and services freely between them. When it comes to dealing with non-members, each member`s trade policies continue to come into force. The failure of Doha has enabled China to reach a global level of trade. It has signed bilateral trade agreements with dozens of countries in Africa, Asia and Latin America. Chinese companies have the right to develop the country`s oil and other raw materials.