Regional trade agreements and the dialectics of protectionism and liberalism: new vectors of competitiveness

Abstract

The article proves that regionalization of the world economy manifested in restructuring of external competitive environment and gradual modification of competitive advantages in terms of new way of distribution of labour is going to require harmonization not only of interregional but also of general standards of international coordination policy in a multisided way. Thus, the convergence of trade and investment regimes and policy in the field of regulating competitive relations established within regional integration associations will play a determinative role in building capacity of regional trade agreements (RTA). Defining potential for further multifaceted liberalization with regard to RTA, the article focuses on the influence, which is to be made on the nature of national development strategy, directions of domestic policy etc. The authors state that RTA is the result of the compromise between protectionist and non-protectionist powers. Support of the free trade is provided by consumers, industries that depend upon product import and from export industries of economy. At the same time, enterprises competing on the domestic market usually actively support limitations. Without any doubt, these antagonistic interests influence the process of regional integration and foreign trade policy.