2. Discuss The Brief History Of Regional And Multilateral Agreements
The first source of uncertainty is that major agreements — such as the Doha Round of the World Trade Organization (WTO), the Transatlantic Trade and Investment Partnership (TTIP), the Trans-Pacific Partnership (TPP) and the Comprehensive Regional Economic Partnership (RCEP) — have shown a trend «once again, abroad.» On the other hand, the number of preferential trade agreements allowing members to access a more favourable market has increased, with bilateral free trade agreements being concluded in addition to major international trade negotiations. More than 250 preferential trade agreements involving two or more countries were put in place from mid-2017.1 The trend towards more liberal multilateral trade would soon slow down at the end of the 19th century, with the world economy experiencing a severe depression in 1873. The depression, which lasted until 1877, served to increase the pressure for greater protection at home and to mitigate any previous dynamics of access to foreign markets. Member States benefit from trade agreements, including increased employment opportunities, lower unemployment rates and increased market opportunities. Since trade agreements generally come with investment guarantees, investors who wish to invest in developing countries are protected from political risks. While the GATT aimed to promote tariff reduction between Member States and thus lay the groundwork for multilateral trade expansion, waves of regional trade agreements intensified over the next period. In less than five years after the creation of the GATT, Europe, with the creation of the European Coal and Steel Community in 1951, would begin a programme of regional economic integration which would ultimately become what we know today as the European Union (EU). As the WTO seeks to expand GATT`s multilateral trade initiatives, recent trade negotiations appear to be entering a phase of «multilateralization of regionalism.» The Transatlantic Trade and Investment Partnership (TTIP), the Trans-Pacific Partnership (TPP) and regional cooperation in Asia and the Pacific (RCEP) account for a significant share of global GDP and world trade, indicating that regionalism could become a broader and multilateral framework. Multilateral trade agreements are trade agreements between three or more nations. The agreements reduce tariffs and facilitate the import and export of companies. Because they belong to many countries, they are difficult to negotiate.
The Trans-Pacific Partnership would have been larger than NAFTA. Negotiations ended on 4 October 2015. After becoming president, Donald Trump withdrew from the agreement. He promised to replace them with bilateral agreements. The TPP was located between the United States and eleven other countries bordering the Pacific Ocean. It would have abolished tariffs and standardised trade practices. The history of international trade may resemble a struggle between protectionism and free trade, but the modern context is growing both types of policies in parallel. In fact, the choice between free trade and protectionism can be a bad choice. Developed countries recognize that economic growth and stability depend on a strategic mix of trade policy.