The paper 'Crawford School of Economics and Government' is a great example of a Macro a microeconomics Assignment. Most countries around the world have exceptionally eliminated barriers so as to trade. The level of trade among countries has increased greatly resulting in a rise in standards of living around the world. The foundation of this system was laid down with the multilateral trading system that was established by the General Agreement on Tariffs and Trade after World War Two and continued under the WTO. This new system has emerged in parallel with the traditional system of managing relations among states to promote political goals and advance national security.
Trade liberation promotes economic interdependence between countries and can directly enhance national security. The global interest in FTAs is an integral part of this process of promoting the economic integration of states. FTAs are legally binding agreements involving two or several states to remove all barriers to trade between them. In recent years FTAs have become increasingly popular. FTAs are seen as easier to negotiate than multilateral agreements, as there are unlikely to be as many contentious issues.
Furthermore, countries can set more ambitious goals for full liberalization in the context of an FTA where such goals may not win support in larger forums. Commitment to facilitate freedom of trade and investment between two countries has become an important way of building and cementing a closer relationship between them. This essay, therefore, looks at the case with Australia and seeks to explore and analyze issues in global trade liberalization by looking at the relationship between the WTO and the regional trade agreements (RTAs). It will further look at the nature and characteristics of the regional trade agreements and ascertain whether the existing regional free trade agreements support or undermine progress in the WTO towards removing barriers to trade and investment. Regional trade agreements (RTAs) are signatories made by regional governments in one region to liberalize and facilitate intra regional trade, by establishing either free trade areas or customs unions.
Regional trade has been gaining increasing importance in the international economy and it accounts for 55% of total global trade. Presently, RTAs dominate on 40% of international trade.
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