ABSTRACT

The number of trade blocs notified to GATT/WTO is over 30 by 1994 and according to various data sources, has exceeded 50 by now. GATT article 24 permits the formation of customs union, free trade area or some interim agreement. Trade blocs have been analyzed from legalistic, institutional, economic, historical, and comparative perspectives. These different perspectives are not mutually exclusive, but they do emphasize different aspects of the process of regionalization in world trade. This paper seeks to link the rich institutional analysis of various trade blocs with the quantitative assessment of their consequences on bilateral trade.