Legal Requirements for FTAs Under the WTO

This chapter addresses the substantive aspects of the exception for Preferential Trade Agreements (PTAs) in relation to goods under Article XXIV of GATT 1994, beginning with an explanation of its structure and scope. The chapter goes on to examine in detail the conditions with which PTAs must comply in order to fall within the exception - these conditions relate to the elimination of restrictions on trade between the parties to the PTA, and to the nature and level of restrictions that the parties to the PTA impose on trade with WTO Members that are not party to the PTA. The chapter then goes on to briefly consider the substantive aspects of the exception for PTAs in relation to services under Article V of the GATS. Finally, it discusses the activities of the Committee on Regional Trade Agreements as well as the lack of enforcement of the rules before WTO Tribunals. This puts into context the likelihood of any legal challenge