Regional trade agreements, Business Economics

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Question:

There are currently some 421 Regional Trade Agreements (RTAs) around the world. These RTAs normally provide preferential treatment to member countries, which is against the World Trade Organisation (WTO) principle of Non-Discrimination.

(a) Describe how RTAs result in preferential treatment for member countries and why the WTO still allow RTAs?

(b) Determine the extent to which Mauritius has benefited by being a member of the regional organisations to which it currently belongs.

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