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Why are Bilateral Trade Agreements so Popular, and Does it Matter?

In: From Growth to Convergence

Author

Listed:
  • Jayant Menon

Abstract

On 15 August 2004, Mongolia signed a trade and investment framework agreement (TIFA) with the United States (US), a precursor to a bilateral trade agreement (BTA). Prior to this, Mongolia was the only country that had not signed either a TIFA or a BTA with another country, or had not joined a regional or plurilateral trade agreement (PTA). Every other country in the world today is a member of at least one BTA, and most are members of multiple BTAs.1 If PTAs were considered the main threat to the world trade system in the 1990s, the concern has since shifted toward BTAs. BTAs have been proliferating at an astounding pace recently.

Suggested Citation

  • Jayant Menon, 2009. "Why are Bilateral Trade Agreements so Popular, and Does it Matter?," Palgrave Macmillan Books, in: Fan Zhai (ed.), From Growth to Convergence, chapter 2, pages 40-73, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25060-4_2
    DOI: 10.1057/9780230250604_2
    as

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