Introduction

Abstract

The dream of economists after World War II was a system of multilateral trade through the International Trade Organization (ITO) to reverse the protectionism of the Great Depression. There is major criticism by economists of the existing system of preferential trade agreements (PTA). Chapter 1 provides the economic analysis of PTAs. It also analyzes the major agreements, such as the European Union (EU), North American Free Trade Agreement (NAFTA), Asia-Pacific Economic Cooperation (APEC), Association of Southeast Asian Nations (ASEAN) and the Common Market of the South (MERCOSUR). The Free Trade Area of the Americas (FTAA) is stalled. There is also discussion of the analytical critique of bilateral agreements of the United States and the EU. The fact is that most of the trade of the world is processed through PTAs. The Organization of Petroleum Exporting Countries (OPEC) is an agreement that intends to restrict production and trade in oil to maintain a high price. The rising price of oil and its role in international trade imbalances is generating proposals for taxation of oil products.