http://www.tradediversion.net/archives/2008/02/multilateralising-regionalism-the-book.html Commentary on development, globalization, and trade by Jonathan Dingel Tue, 07 Feb 2012 12:16:24 -0800 http://wordpress.org/?v=2.8 hourly 1 http://www.tradediversion.net/archives/2008/02/multilateralising-regionalism-the-book.html/comment-page-1#comment-245 the Sustainable Development Blogger Sun, 02 Mar 2008 23:37:19 +0000 http://www.tradediversion.net/?p=788#comment-245 I already heard Baldwin and its ideas on multilateralizing regionalism. I have at least one problem with its propositions. Baldwin, as most economists, is missing an important point: RTA pursues often other objectives than liberalizing trade. In fact, often RTA, notably South-South, pursue political objectives linked to security, to improve the weight of the region at the international level and to solve regional or global problems that the multilateralism failed to solve. For these reasons, RTA should be context specific and they should not comprehend a MFN clause. In fact, this clause will undermine many of South-South Regional integration processes that according to UNCTAD are likely to help to achieve development objectives. We need a more broad understanding of the RTA reality and its implications in terms of development. Furthermore, as I underlined in my blog, free trade is not bringing development gains in every situation. We should not forget that free trade is not a goal per se. Trade is only a tool to achieve sustainable development. To reach this goal free trade should be adopted by developing countries strategically. I already heard Baldwin and its ideas on multilateralizing regionalism. I have at least one problem with its propositions. Baldwin, as most economists, is missing an important point: RTA pursues often other objectives than liberalizing trade. In fact, often RTA, notably South-South, pursue political objectives linked to security, to improve the weight of the region at the international level and to solve regional or global problems that the multilateralism failed to solve. For these reasons, RTA should be context specific and they should not comprehend a MFN clause. In fact, this clause will undermine many of South-South Regional integration processes that according to UNCTAD are likely to help to achieve development objectives. We need a more broad understanding of the RTA reality and its implications in terms of development. Furthermore, as I underlined in my blog, free trade is not bringing development gains in every situation. We should not forget that free trade is not a goal per se. Trade is only a tool to achieve sustainable development. To reach this goal free trade should be adopted by developing countries strategically.

]]>