The lack of progress in multilateral trade negotiations does not imply that global integration is stagnant. In fact, governments across the globe are as active as ever in negotiating new regional trade agreements (RTAs). For example, in the year to October 2009, as the global financial crisis raged, 25 new RTAs were notified to the WTO. The new agreements bring the total number of RTAs in force to nearly 300. This has led many economists to worry that regionalism could be undermining the multilateral trading system (Bhagwati 2008, Limao 2006).
In recent research (Freund and Ornelas 2010), we ask whether the expansion of regionalism should be celebrated or a cause for concern.
The lack of progress in multilateral trade negotiations does not imply that global integration is stagnant. In fact, governments across the globe are as active as ever in negotiating new regional trade agreements (RTAs). For example, in the year to October 2009, as the global financial crisis raged, 25 new RTAs were notified to the WTO. The new agreements bring the total number of RTAs in force to nearly 300. This has led many economists to worry that regionalism could be undermining the multilateral trading system (Bhagwati 2008, Limao 2006).In recent research (Freund and Ornelas 2010), we ask whether the expansion of regionalism should be celebrated or a cause for concern.
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