Emerging economies and global trade rules
Despite globalisation, protectionism and the exclusion of emerging markets from global trade deals, there is a will to take the multilateral trade agenda forward. With EU funding, the MULTITRADE project analysed the potential structure of a multilateral trade negotiation system and trade liberalisation approach. The project focused on the emergence of RTAs and their effect on multilateral trade. It also investigated the future of the World Trade Organization (WTO) as a leading multilateral trade negotiating body, and how it can be reformed to optimise its functions. Two key papers were published in this respect. The first examines how large RTAs can influence the multilateral trading system and how this may affect China and India. The new economic governance system that is likely to arise given the rejuvenated interest in regionalism was also analysed. The working paper notes that market fragmentation is caused by imbalances. These imbalances are the result of free trade agreements that were not opened up on a global scale. The second paper explores the potential implications of the recent global shift towards regionalism for the two emerging markets. It studies how various regional agreements being negotiated can be brought in line with the WTO. Future challenges and reforms that need to be addressed by the WTO have also been set forth. By emphasising deeper multilateral engagement between EU Member States, findings are also relevant to the wider EU community. MULTITRADE provided extensive insight into emerging market concerns over multilateral trade governance. The EU should be well positioned to enter into trade negotiations with emerging countries while supporting trade multilateralism.
