Preferential trade policies and agreements

After a temporary slow-down in 2012, the proliferation of preferential trade agreements (PTAs), which for Asia-Pacific economies began in earnest in the early 1990s, is continuing. There is no single reason for this preoccupation with PTAs; rather, it is a combined role of: (a) lack of progress in securing lower trade barriers and/or opening new areas of liberalization through multilateral trade negotiation; (b) contracting import demand in most of the developed country markets that, on average, have low tariff barriers and need to open new markets that might be more protected; and (c) recognition of the benefits of South-South PTAs.

Related Subject(s): International Trade and Finance