Critical analysis of Role of Regional Trade Agreements for the Essay

Critical analysis of Role of Regional Trade Agreements for the Developments of its Member Countries - Essay ExampleThe World banking concern also cautions that RTAs improve economic instruction in one country and negatively impact economic phylogeny in another member.3 Therefore RTAs end facilitate uneven development among the member states. This will occur when RTAs divert trade from some member states and divert trade to others.4 This research theme provides a critical analysis of the role that RTAs play in the developments of its member states. A definition of RTA and its historical developments are examined first. The role of RTAs in member state development will be examined in greater detail with specific reference to the Gulf Cooperation Council (GCC) and African Regional Trade Agreements and the role that these RTAs play in the development of their respective states. Contents Abstract 2 Contents 3 Introduction 4 I.Definition and Overview of RTAs 5 A.Definition 5 B.Overvie w of RTAs 7 II.Development of GCC States 14 III.African RTAs 19 Analysis/ finding 25 Bibliography 27 Introduction There are essentially two opposing views relative to the role that RTAs play in its members development. ... two decades RTAs have emerged as the defining features of the modern economy and is largely seen as a significant influence relative to globalization.6 By the year end 2005, the World Trade giving medication (WTO) had received notification of at least 250 RTAs.7 Since 1995, the WTO has received at least 15 RTA notifications each year as opposed to just 3 RTA notifications yearly prior to 1995.8 The proliferation in RTAs therefore suggest that the countries engaging in regionalism have a positive vision of what RTAs can bring them in terms of development. This paper examines the perceived developmental benefits of RTAs and critically evaluates whether these perceptions are realistic. I. Definition and Overview of RTAs In order to effectively analyze the role that RTAs play in the development of its member states, a definition and an overview of the nature and development of RTAs are necessary. It is necessary to understand what RTAs are, how they function and what motivates the formation of RTAs. With this understanding of RTAs, their role in the development of member states can be examined. In other words, development will depend entirely on the developmental objective behind the formation of a RTA. For example if a RTA is organize in order to improve and develop the member states economy, the role of the RTA in that regard will have to be examined. If a RTA is formed for the purpose of harmonizing regional economic and security cohesion, the role of that RTA on development by member states will have to be examined. A. Definition In simple terms a RTA is defined as an agreement among neighbouring states in which tariffs and other trade restrictions are reduced or removed.9 RTAs are also defined as actions by governments to liberalize or facilitate trade