Regional Trade agreements and their impact on globalisation

Economists are still unaware as to whether regional trade agreements and trade hinder or promote globalisation. Given that they can be inclusive or exclusive, offer reciprocal trade to other countries or set high tariff walls, it appears that many countries are seeking membership to avoid being the one left out. As the World Trade Organisation works towards achieving unilateral reductions in protection to maximise the benefits of trade, it seems that those countries that are …

…blocs will lead to increased protectionism, or the promotion trade liberalisation. We are yet to discover the benefits of free trade compared to the establishment of regional trade agreements or trading blocs. It may be that with current trends in world economics, we may never see free trade totally implemented. Rather we may live in a world of competing trading blocs, bringing prosperity and increased market share on a regional rather than a global basis.