14 Preferential Trade Agreements
Mitsuo Matsushita, Thomas J. Schoenbaum, Petros C. Mavroidis, Michael Hahn
Mitsuo Matsushita, Thomas Schoenbaum, Petros C. Mavroidis, Michael Hahn
- Specific trade agreements — Sources of international law
This chapter focuses on the role of preferential trade agreements (PTAs) in the GATT/WTO regime. WTO Members that have satisfied the requirements included in Article XXIV GATT can justifiably treat products originating in some WTO Members (those with which they have formed a PTA) better than like products originating in the remaining WTO Members. Art. XXIV GATT distinguishes between two forms of PTAs: free trade areas (FTA) and customs unions (CU). The negotiating history of Art. XXIV GATT; the explanations advanced by economists and political scientists for why one might opt to go preferential; the legal tests for approving a PTA; and PTAs in WTO dispute settlement are discussed.