PREFERENTIAL TRADE AGREEMENTS AS COMPONENTS OF THE NEW WORLD ORDER
Abstract
The article is devoted to the analysis of features of regional agreements on preferential terms. Such agreements have become a popular instrument in international trade in the 21st century. Free trade area agreements between countries are found to be the most common in the world and account for almost 60% of the total number of preferential trade agreements. The term “preferential trade agreement” has been suggested, the subject of which is the granting of preferences in trade between the participant states, both unilaterally and on a reciprocal basis. Benefits of preferential trade agreements in both trade and economic spheres have been analyzed. It is determined that the signing of such an agreement can be a tool to protect both the already functioning production networks and an impetus and condition for the further development of trade relations of the partner countries. On the other hand, facilitating access to a more favorable institutional environment or to higher quality services, whose role in the production process increases, will lead to relocation of production, thereby altering the routes of value added and reducing the export of value added from that country (which is included) to the integration group. It is proven that the main goal of the mega-regional preferential partnerships is to reach new standards in the field of trade in goods and services, investments, environment, working conditions, intellectual property, fight against corruption, competition. On the other hand, it is an attempt to create institutionally compatible legal and regulatory environments for global preferential trade (an instrument of preserving and enhancing the competitiveness of states in the context of a new world order). The results obtained indicate that the spread of preferential trade agreements in the 21st century is an institutional response to the problems and needs of trade related to outsourcing of production. It is justified that further multilateral liberalization in WTO format at a deeper level than in preferential trade agreements is a more promising direction for the development of international trade, since preferential liberalization is not completely without its disadvantages, compared to multilateral regulation.
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