This new book highlights the multifaceted effects of regional trade agreements and outlines the strategic options for EU trade policy. It points out what is new about this most recent phase of regionalism and analyzes the effects on economic welfare and trade transaction costs. The authors draw upon elements of game theory to explore a self-reinforcing mechanism that is resulting in a potentially damaging race for markets. They focus in particular on the multiple impacts of regionalism on the WTO and the multilateral trading order. The book arrives at an opportune time, as the Doha Round is reaching a critical phase.
Guido Glania is responsible for trade and development policy at the Federation of German Industry (BDI). Jurgen Matthes is a senior economist with the Cologne Institute for Economic Research, where he is responsible for the international economic policy department.