MEGA TRADE AGREEMENTS: AN EMERGING TREND

Ever since the World Trade Organization (WTO) was established in January 1995, countries across the globe have understood and appreciated the large-scale benefits of trade agreements. However, the Geneva-based multilateral trade organization has a clause that ostensibly creates a down side for countries that look to liberalize at a fast pace- all agreements within the WTO can be adopted only on the basis of a consensus. This clause, which seeks a complete consensus, is because in WTO every member has one vote. This, at times, holds back the ambitions of several countries that profess and seek quicker trade liberalization to pursue higher market access for their products and services. Therefore, may countries realize that greater liberalization of trade is more easily pursued outside the multilateral framework.