Preferential trading area

These tariff preferences have created numerous departures from the normal trade relations principle, namely that World Trade Organization (WTO) members should apply the same tariff to imports from other WTO members.

[3] In 2004, Scott Baier and Jeffrey Bergstrand published that there were three economic determinants critical to the formation of PTAs.

Democratic leaders are incentivized to keep their constituents satisfied, and PTAs can help lower the price of consumer goods.

Advocating for PTAs also lets democratic leaders signal to voters that they are committed to policies that improve their welfare.

The TREND project[6] of the Canada Research Chair in International Political Economy lists around 700 trade agreements, the vast majority of which are bilateral.

Stages of economic integration around the World (each country colored according to the most integrated multilateral agreement that it participates in):
Economic and monetary union ( ECCU / XCD , Eurozone / EUR , Switzerland–Liechtenstein / CHF )
Economic union ( CSME , EAEU , EU , GCC , Mercosur , SICA )
Common market ( EEA –Switzerland )
Customs and monetary union ( CEMAC / XAF , UEMOA / XOF )
Customs union ( CAN , EAC , EUCU , SACU )
Multilateral free-trade area ( AANZFTA , ASEAN , CEFTA , CISFTA , COMESA , CPTPP , EFTA , GAFTA , PAFTA , RCEP , SADCFTA , SAFTA , USMCA )