ABSTRACT
It is not an exaggeration to describe the recent growth of preferential trade agreements (PTAs) as a proliferation (see Figure 14.1 ). 1 Their share of world trade has risen within the past five years from some 40 per cent to over half; more trade is now conducted on a preferential basis than under the most-favoured-nation (MFN) principle of the WTO. And when fully operational, the mega PTAs, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), will further dominate the trade landscape. With multilateral negotiations under the Doha Development Agenda (DDA) in stalemate, preferential trade agreements have become the centrepiece of trade diplomacy. This trend is set to continue. This chapter considers why this has happened and assesses the consequences.
