Economy Politics Country 2026-03-27T13:20:24+00:00

Weakening of Multilateral Trade in Favor of Regional Agreements

The proliferation of regional trade agreements undermines the WTO's non-discrimination principle, fragments international trade law, and creates a complex web of preferential obligations. Mexico must diversify its markets to reduce dependence on the US.


Weakening of Multilateral Trade in Favor of Regional Agreements

The proliferation of Regional Trade Agreements (RTAs), particularly those structured as Free Trade Zones or Free Trade Agreements (FTAs)—such as the USMCA—has gradually displaced the principle of non-discrimination or Most-Favored-Nation (MFN) treatment, a cornerstone of the multilateral system. These mechanisms often operate preferentially over the WTO's Dispute Settlement Body. Consequently, this leads to a fragmented interpretation of international trade law, as different panels or tribunals may apply distinct criteria, reducing uniformity in the interpretation of norms. Rules of origin are another element that adds complexity to international trade. Although these agreements do not necessarily violate multilateral rules, they often supersede them in scope and provide preferential treatment to signatory countries. The scale of this trend is evident in the number of active trade agreements maintained by Mexico's major trading partners, according to WTO data: United States: 15, Canada: 15, European Union: 46, United Kingdom: 39, Chile: 31, China: 22, Peru: 21, Mexico: 23. These agreements involve 78 countries. Regional agreements have also incorporated disciplines that go beyond those in multilateral agreements. Nearly all RTAs include their own dispute settlement procedures, typically through arbitration panels or ad hoc tribunals. In the WTO's most recent report, published on January 13, 2026, it is stated that there are currently 380 RTAs in force, resulting from 628 notifications by the organization's members. This data highlights a trend in contemporary international trade: multilateralism, as a model for global trade organization and regulation, is showing signs of weakening against the growing proliferation of regional trade agreements. However, in practice, most RTAs include chapters on trade remedies, allowing for the application of anti-dumping and countervailing measures between partners. A more coherent alternative would be to replace these mechanisms with provisions on economic competition, based on antitrust and competition defense laws. The expansion of regional agreements suggests that multilateral trade is undergoing a period of weakening, being progressively replaced by a complex network of preferential agreements with varying levels of integration and legal obligations. In this context, Mexico faces a strategic challenge. Mexican exporting companies must diversify their markets and fully leverage the country's network of trade treaties, reducing the heavy dependence on the U.S. market. Trade diversification becomes particularly relevant in an international context marked by geopolitical tensions and increasingly unpredictable trade policies. Article XXIV of the GATT, in paragraph 8, establishes that in such schemes, customs duties and other restrictive commercial regulations must be eliminated. Since anti-dumping duties constitute a restrictive measure regulated under Article VI of the GATT, their application within an integrated regional market should be exceptional.

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