Regional trade agreement

A regional trade agreement (RTA) is an economic trade agreement to reduce tariffs and restrictions on trade between two or more nations within a certain region. There are currently 205 agreements in force as of July 2007. A total of 300 RTAs have been reported to the World Trade Organization (WTO). [cite web|url=http://www.wto.org/english/tratop_e/region_e/region_e.htm|title=Regional trade agreements|date=2007-7|publisher=WTO|accessdate=2008-07-20] There are a variety of RTAs; with some being quite complex(European Union, while others are far less intensive (North American Free Trade Agreement). [Cite book
isbn = 0226259951
pages = 64
last = Whalley
first = John
title = The Regionalization of the World Economy
chapter = Why do countries seek Regional Trade Agreements
accessdate = 2008-07-21
date = 1998
chapterurl = http://books.google.com/books?hl=en&lr=&id=RxvLPTCDqVoC&oi=fnd&pg=PA63&dq=Regional+trade+agreement&ots=IrnQAjB7kU&sig=7sLsMYmPMWBpmL-FEfBGJCyTnrg#PPA64,M1] For the most part, governments are supportive of further RTAs; however, there has been some concerns expressed by the WTO. According to Pascal Lamy, Director-General of the WTO, the proliferation of RTA “...is breeding concern — concern about incoherence, confusion, exponential increase of costs for business, unpredictability and even unfairness in trade relations.” [Cite paper
last = Lamy
first = Pascal
title = DG Pascal Lamy - Proliferation of regional trade agreements “breeding concern” -- Lamy
location = Geneva
accessdate = 2008-07-20
date = 2007-09-10
url = http://www.wto.org/english/news_e/sppl_e/sppl67_e.htm]

RTAs are preferential trade agreements and therefore different from arrangements such as APEC, which are open not preferential. RTAs come in different forms:
#An FTA is a group of two or more customs territories which has eliminated tariffs and other trade restrictions on substantially all trade.
#A Customs Unions is two or more customs territories which have an FTA and which also apply a common external tariff on goods from non-members.
#A regional economic integration agreement is the next step: it can include the free movement of capital as well as goods and services, a common currency and a common economic policy

References