Answer to Question #66924 in Finance for Chandrani

Question

Are multilateralism and regionalism compatible?

Answer 1

Multilateralism is represented by the efforts on worldwide liberalization of international relations, which started in the field of trade in goods when General Agreement on Tariffs and Trade (GATT) was signed, and developed into broader fields of trade.
According to regionalism parties to a regional trade agreement (RTA) offer each other more favourable treatment in trade matters than to the rest of the world (including WTO Members).