Lecture 121 of Professor David LeeAEM 230 / ECON 230Economic Integration: Regional and Preferential Trade Agreements¾Trade agreements – among geographical country groups – in which countries agree to lower, or no, tariff or NTB restrictions amongst member countries. ¾Generally acknowledged that multilateral liberalization is preferable: it is “first best” (gains from freer trade are greater), global and not partial, and avoids many complications that arisein regional agreements. ¾RTAs/PTAs inherently discriminatory (counter to GATT-WTO principles) but permitted under Article 24 of GATT. Why?
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