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Mega-Regional Trade Agreements

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Mega-Regional Trade Agreements

Game-Changers or Costly Distractions for the World Trading System?

World Economic Forum,

15 min read
10 take-aways
Audio & text

What's inside?

Mega-regional trade agreements may have a significant impact on the future of international trade.

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Editorial Rating

7

Qualities

  • Comprehensive
  • Scientific
  • Eye Opening

Recommendation

Mega-regional trade agreements could alter the nature of multilateral trade. This thought-provoking report from the World Economic Forum explains that nations join these agreements for a variety of reasons, depending on the nature of the agreement and the timing of negotiations. The United States and the European Union each pioneered regional trade collaboration in the 1990s and are driving two major mega-regional negotiations: the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Trade and Investment Partnership (TTIP). For all the benefits these mega-regionals could offer their participants, they effectively omit more than 80% of the world’s population. getAbstract recommends this comprehensive report to trade executives, policy makers, investors and NGOs worldwide – especially those in developing countries.

Summary

The Scope of Trade Agreements

Members of the World Trade Organization (WTO) have been joining regional trade groups for some time. However, today’s discussions among potential members of mega-regional trade agreements differ quantitatively and qualitatively from earlier negotiations on regional pacts.

The parties in mega-regional alliances are “countries or regions with a major share of world trade and foreign direct investment.” In these interregional agreements, “two or more of the parties are in a paramount driver position, or serve as hubs, in global value chains.” Their potential partners – at differing levels of economic development – come from diverse areas.

Ongoing negotiations on forming mega-regional trade agreements, such as the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Trade and Investment Partnership (TTIP), could have a significant impact on the future of multilateral trade. The agreements could also influence countries that are not part of the negotiations.

The TPP seeks to reach agreement on such issues as intellectual property, competition policy and investments in order to construct “transnational production networks.” ...

About the Author

The World Economic Forum is an independent global organization that engages leaders of business, politics, academia and society to improve the state of the world.

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