Conclusion: FTAs in a Competitive World

Abstract

A large and increasing number of free trade agreements (FTAs) has become a defining feature of global trade in the early twenty-first century. Even countries such as those in East Asia, which were reluctant to engage in FTA negotiations a mere ten years ago, are now avid participants. Although the tangible benefits of FTAs are ambiguous,¹ and they may be undermining multilateral trade negotiations under the World Trade Organization (WTO), the FTA frenzy has continued and accelerated. Thus, we began by asking the following questions. What is driving these FTAs? What explains the intense interest of so many countries in FTAs despite their ambiguous benefits?