Trade Agreement Alliances

Most-Favoured-Nation (MFN) status is part of the WTO`s non-discrimination mandate. Most-favoured-nation status requires a WTO member to apply the same conditions for trade with all other WTO members. In other words, if a country grants a special favor to another country (including a non-WTO member), any other WTO member must receive the same treatment. You`ve probably seen a version of most-favored-nation status when an adult told you that if you wanted to take chewing gum or candy in class, you should bring enough for everyone. In other words, you couldn`t just give chewing gum or candy to your best friends, and if you didn`t have enough for everyone in class, no one received it. This is how most-favoured-nation status works. The Doha Round would have been the world`s largest trade deal if the US and the EU had agreed to cut their agricultural subsidies. After its failure, China gained ground in the global economy by adopting profitable bilateral agreements with countries in Asia, Africa and Latin America. So far, you`ve seen international organizations such as the WTO, the IMF, and the World Bank support global trade, but that`s only part of the story. Where world trade is actually stimulated, there are trade agreements (also called trade blocs). This is where the term “global economic integration” takes its legs – from the process of changing barriers between and between nations in order to create a more integrated global economy. trade agreements differ in the amount of free trade they allow between members and non-members; each has a unique level of economic integration.