Role of Mega-Regional Trade Agreements in Fostering Global Economic Governance

Abstract

The World Trade Organization (WTO) is the premier body that upholds a rules-based order for efficient global trade governance. With rapid alterations in the geopolitical and geo- economic relations around the globe, the relevance of the WTO is under scrutiny. In recent times, many multilateral negotiations have failed to reach any conclusion due to a deadlock over the interests and objectives of participating member countries. Resultantly, many countries have entered into regional trade agreements that are more compatible with their aspirations. The advancement of regionalism has made way for more sophisticated agreements- Mega-Regional Trade Agreements (MRTAs) encompassing the current trend of complex global production relations.  The study analyzes two important MRTAs- Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP). The paper aims to investigate the viability of MRTAs as building blocks of multilateralism. It mainly posits that the signing of MRTAs does not mean the demise of the WTO.  The study affirms that the WTO can overcome all its impediments and work in unison with the MRTAs for sound global trade governance architecture.