Termites in the Trading System: How Preferential Agreements Undermine Free Trad

Oxford University Press Inc

Discover how Preferential Trade Agreements (PTAs) are undermining the global trading system in Jagdish Bhagwati's seminal work, "Termites in the Trading System". Bhagwati, an internationally renowned economist, critically examines the rapid proliferation of PTAs, revealing their detrimental impact on non-discrimination and trade principles. This book illuminates the "spaghetti bowl problem" created by these agreements, highlighting how they disadvantage smaller countries and exporters. Bhagwati also delves into how PTAs are often tied to extraneous issues like capital flows and labor standards, forcing weaker nations into unfavorable demands. "Termites in the Trading System" serves as a crucial warning about the risks to the world trading system and the challenges of achieving multilateral free trade. The book argues that PTAs are not stepping stones but significant obstacles on the path to genuine free trade. Key Takeaways: * Analyzes the threat posed by over 300 increasing Preferential Trade Agreements. * Explains the "spaghetti bowl problem" and its negative effects on global trade. * Discusses how PTAs can force unequal terms on weaker nations. * Argues that PTAs hinder, rather than help, the progress towards global free trade.