Preferential agreements as an instrument of integrational neoprotectionism in the conditions of increasing asymmetries of economic development

Abstract

The purpose of this article is to demonstrate the theoretical basis of the asymmetry of international trade as a key feature of global payment and trade imbalances, which becomes a trigger for the formation of regional trade agreements and the development of preferential trade as a unique case of implementing the policy of integration neo-protectionism. The signing of preferential trade agreements is a way to reduce trade asymmetry. An important trend can be identified in the high and constantly increasing degree of involvement of developing countries in the processes of concluding PTAs. The share of trade agreements on a reciprocal basis with the participation of developing countries accounts for more than 60% of all PTAs. The signing of preferential trade agreements is a component of the policy of integration neoprotectionism, aimed at reducing the asymmetry of international trade and the non-equivalence of exchange between developing countries. India’s Look East policy has proven to be effective as a strategic tool for reorienting its foreign policy and can be seen as an example of the implementation of a policy of integrational neo-protectionism. Preferential trade has played a key role in boosting India’s exports, contributing to a 20-fold increase in trade turnover with ASEAN over two decades. The success of this policy is based on a comprehensive approach that combines economic, security and cultural aspects of cooperation. Preferential trade agreements, especially those such as the Indo-ASEAN Free Trade Agreement, have created favorable conditions for increasing India’s export potential and diversifyingits foreign economic relations. In the future, the further development of India’s Look East policy will require overcoming geopolitical challenges, strengthening institutional cooperation and deepening economic integration. Only under such conditions willIndia be able to fully realize its potential as an influential player in the Asia-Pacific region and ensure the sustainable development of an export-oriented economy. As economic relations become politicized, the implementation of “decoupling”, “friendshoring” or “niashoring” policies are becoming new forms of implementing the policy of integration neo-protectionism.