Which Of The Following Statements About Regional Trade Agreement (Rta) Is Incorrect
Regional trade agreements (TAs) have increased in number and scope over the years, including a remarkable increase in the number of large plurilateral agreements under negotiation. Non-discrimination between trading partners is one of the fundamental principles of the WTO; However, RAs, which are reciprocal preferential trade agreements between two or more partners, are one of the exceptions and are allowed under the WTO subject to a number of rules. Information on RTAs notified to the WTO is available in the RTA database. The potential costs and opportunities of RAs from a WTO perspective have two aspects: the net impact on global trade and well-being, and the political impact on the strength and credibility of the multilateral system itself. The main task of the WTO (and its predecessor) is to promote freer world trade. But their role in creating a rules-based multilateral system based on non-discrimination is at least as important for smaller, generally poorer developing countries that would otherwise be subject to the protectionist whims of larger and more powerful trading partners. In addition, poorer countries are rarely invited to join economically important RAs and may be at a disadvantage in key markets. From the beginning, however, there were exceptions. While the United States was a strong advocate of non-discrimination, the United Kingdom wanted to maintain preferential trade agreements with the Commonwealth. British negotiators eventually agreed to include non-discrimination as a fundamental principle in the subsequent GATT, but they also insisted on an exception for imperial preferences. .