Although the recent spread of RTAs has given rise to concerns that such selective trade arrangements will undermine the benefits of global tariff reform and entrench trading blocs rather than free trade. RTA is beneficial to its member countries in the following aspects:
By lowering or eliminating tariffs among themselves, the RTA member countries can enjoy lower importing price and thus increase their overall trade. Due to the trade diversion resulting from the relative lower price, some member countries can increase their imports on goods previously supplied by countries outside the RTA.
In addition, RTAs can join the international trade negotiations as a whole. Thus, joining in a RTA will enhance the member countries' bargaining power in multilateral negotiations because of the enlarged size of the negotiator.