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The Regulation of International TradeGATT$
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Petros C. Mavroidis

Print publication date: 2016

Print ISBN-13: 9780262029841

Published to MIT Press Scholarship Online: January 2017

DOI: 10.7551/mitpress/9780262029841.001.0001

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Preferential Trade Agreements

Preferential Trade Agreements

(p.291) 6 Preferential Trade Agreements
The Regulation of International Trade

Petros C. Mavroidis

The MIT Press

This chapter focuses on preferential trade agreements, the second exception to the most favored nation clause. Unlike special and differential treatment, which is focused on providing benefits to developing countries, preferential trade agreements are designed to liberalize ‘substantially all trade’. This chapter examines the two permissible forms to qualify for the exception – a customs union or free trade areas – the pros and cons of each form and what is meant by ‘substantially all trade’. Further, the chapter discusses litigating PTAs before the WTO.

Keywords:   Preferential Trade Agreements, Free Trade Area, Customs Union, Litigating PTAs

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