On the politics of preferential trade agreements

Giovanna Maria Dora Dore

Chapter 6 in Handbook on the Politics of International Agreements, 2026, pp 96-107 from Edward Elgar Publishing

Abstract: This chapter examines the political and economic dynamics shaping the rise and evolution of Preferential Trade Agreements (PTAs), now central to the global trading system. It traces their proliferation from post–World War II cooperation under GATT to the complex network of bilateral and plurilateral arrangements covering over half of global trade. The chapter finds that PTAs have expanded beyond tariffs to include regulatory, social, and environmental provisions, making them instruments of both economic liberalization and political influence. Empirical evidence suggests PTAs generally promote trade creation over diversion and can complement multilateral liberalization, though welfare gains vary and often depend on institutional design and domestic politics. The analysis highlights the growing role of dispute settlement mechanisms in enforcing commitments and argues that PTAs serve as both tools of integration and reflections of global power asymmetries, calling for deeper research into their distributive and governance implications.

Keywords: Rise and Evolution of Preferential Trade Agreements; Global Trade; Trade Creation; Trade Diversion; Domestic Politics; Dispute Settlement (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035318582
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