Sample Solution

Regional trade agreements (RTAs) are a key fixture in international trade relations. Over the years RTAs have not only increased in number but also in depth and complexity. WTO members and the Secretariat work to gather information and foster discussions on RTAs to enhance transparency and to increase understanding of their impact on the wider multilateral trading system. RTAs in the WTO are taken to mean any reciprocal trade agreement between two or more partners, not necessarily belonging to the same region. As of June 2016, all WTO members now have an RTA in force. Documents, including factual presentations, on the various regional trade agreements notified to the WTO are available in the RTA Database. Non-discrimination is a core principle of the WTO. Members have committed, in general, not to favor one trading partner over another. An exception to this rule is RTAs. These deals, by their very nature, are discriminatory as only their signatories enjoy more favorable market-access conditions. WTO members recognize the legitimate role of RTAs which aim at facilitating trade between its parties but which do not raise trade barriers vis-à-vis third-parties.