FTA Boom Raises Concerns Over Divided Trade Rules
What Happened
The World Trade Organization (WTO), in its World Trade Report 2026, warned that the growing reliance on free trade agreements (FTAs) and unilateral trade measures could fragment the global trading system. However, the WTO noted that about 72% of global merchandise trade still takes place under its Most Favoured Nation (MFN) framework, underscoring the continued importance of multilateral trade rules. The warning comes as India and several other countries accelerate negotiations on bilateral and regional trade agreements.
Key Takeaways
While FTAs can boost market access and strengthen economic ties, the WTO cautions that an increasing patchwork of trade arrangements could weaken the predictability of global commerce. The report highlights the need to preserve a strong multilateral trading system even as countries pursue bilateral trade deals.