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What Are Preferential Trade Agreements

These tariff preferences have led to many departures from the principle of normal trade relations, namely that members of the World Trade Organization (WTO) should apply the same tariff to imports from other WTO members. [1] Second, the term “preferential trade agreements” can be used for agreements that are partially within the scope of the scope. These agreements provide preferential market access by reducing import tariffs to a limited amount of goods. First, it is one of the names that are sometimes used for free trade agreements, to emphasize their preferential nature, in contrast to trade liberalization under the WTO or unilateral reduction of tariffs. The World Trade Organization unilaterally designates preferential trade agreements and reciprocal trade agreements as regional trade agreements. The way in which free trade agreements are designated may also be different. Most free trade agreements are designated by listing the participating countries and adding the term “FTA.” For example, the Canada-Korea Free Trade Agreement. However, some free trade agreements are called under different names. For example, the Canada-EU free trade agreement is referred to as a comprehensive economic and trade agreement.

Other countries call their trade agreements Economic Partnership Agreements (EPAs) or Global Economic Partnerships (CEPs). Other variants are also used. Regional Trade Agreements (ATRs) – The WTO uses the term “regional trade agreements” as a generic for all reciprocal agreements, such as trade agreements, free trade agreements and partial agreements. This is because such agreements were primarily within the jurisdiction of the WTO Regional Trade Agreements Committee. In reality, such trade agreements should not include members. B from the same region (e.g., EU-Canada or Peru-South Korea free trade agreements). In principle, we can distinguish between unilateral trade agreements and systems (offered from one side to the other) and reciprocal trading systems (negotiated and approved by both parties). All of the above agreements are free trade agreements, but for a variety of reasons, members prefer to name them under another name. In many cases, these names reflect the broader scope of agreements: many recent free trade agreements go beyond the scope of traditional trade agreements and cover areas such as public procurement, competition, intellectual property, sustainable development, labour and the environment, etc.