The post-1990 period has seen a proliferation of preferential trade agreements (PTAs). Some 700 PTAs are currently in force, compared to a little more than 100 PTAs before 1990. Both developed and developing countries have been and are deeply involved in preferential trade liberalisation. While tariff reductions on a preferential basis are a central feature of all trade agreements, the inclusion of provisions that do not pertain directly to merchandise trade policies – e.g. provisions protecting foreign investment (FDI) and liberalising access to markets for services – has become increasingly common in PTAs. As a result, many PTAs regulate trade-related issues more extensively and more stringently than the WTO. Simply put, preferential liberalisation has become the main instrument of trade policy cooperation
