RTAs and South Asia: Options in the Wake of Cancun Fiasco

Already, the formation of the WTO did not halt the proliferation of new RTAs. There has been an enormous increase in Preferential Trade Agreements (PTAs) in the last twenty years. In fact, RTAs legitimacy is well recognised under GATT/WTO. By their very nature, such arrangements favour imports from members of the grouping and discriminate against imports from other countries. This departure from the MFN principle is permitted by Article XXIV of the GATT.