Regional Trade Agreements (RTAs) have been part of the international arena within the multilateral trading system for a considerable time and have as such been considered an important part of a state’s trade policy.[1] Such multilateral or bilateral treaties are signed within the international forum with the ultimate aim of promoting free movement of goods or services across frontiers and removing different trade barriers, such as tariffs, quotas or certification standards.[2] In a context where states traverse the continuously developing framework of global trade, Regional Trade Agreements occupy a pivotal role in numerous policy debates and have the power to change future economic and trade relations within the international forum.[3]
The importance of RTAs can be highlighted through their advantages in different sectors. The promotion of economic development is an expository instance, where commerce between states is facilitated by removing barriers to trade. Furthermore, RTAs attract foreign investment, as they influence the investment policies of states. They foster regional integration by making states harmonize their trade and investment regulations.[4] Countries seek to negotiate regional trade agreements (RTAs) for a number of different reasons, such as looking for a mode of securing access to the large markets of developed states, as is the case of least developed states (LDS) or developing states, or using the regional agreement to reform the states’ domestic policy and make it harder be subjected to amendments, as Mexico tried when concluding the NAFTA.[5]
RTAs have been originally negotiated between government representatives, but the need for relevant and accurate information from the sectors most affected by such Agreements has called for the inclusion of stakeholder negotiations in the process of enacting them.[6]
The negotiation process of a RTA starts with securing a National Mandate through various intergovernmental and stakeholder consultations. Stakeholder participation has been increasingly used by states in order to guide the formulation of the states’ objectives during the negotiation stage. As such, this article aims to highlight the implications of such consultations, as well as the benefits derived from such activities.[7]
Securing diverse information with respect to the sectors affected by that specific regional agreement is one of the most important benefits which originates from stakeholder consultations. States have broad objectives that are to be followed when negotiating the content of a RTA, which could include trade remedies, non-tariff barriers and investment opportunities. As such, through consulting with stakeholders directly affected by the RTA, these objectives can be narrowed down in order to offer the states’ negotiators a better view on what specific aims need to be followed. This could be seen in the context of the EU-Thailand FTA, when the EU used questionaries to gather relevant information from the stakeholders’ perspectives and interests.[8] Ergo, through carrying out such consultations, trade diplomats are able to establish the “national interest”[9] and express it in the negotiations phase.
A further merit of stakeholder consultations is the fulfillment of inclusive trade policy making, as it is marketed in different political discourses around the world. Deep trade policy agreements, which tackle numerous areas of interest are more prone to be subjected to lobbying from the more powerful sectors affected. Such powerful lobbyists are able to influence the policy makers and pursue their own interests at the expense of the public interest. As such, by failing to carry out consultations with all stakeholders affected, policy makers might conclude an agreement that is based on biased inputs, which do not capture the entirety of interested stakeholders, such as small businesses.[10]
Transparency of Regional Trade Agreements is an important aspect within the negotiation and adoption of such an international treaty. Including all the relevant persons affected, creates an inclusive environment, that further increases the public’s faith in their government’s affairs. If only intergovernmental consultations are to be carried out, there exists the risk of public suspicion and disbelief, which could further lead to objections from the society against the adopted RTA, in the form of protests, as was seen in the protests around the world against the Trans- Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP).[11] The importance of transparency in negotiating trade agreements could be seen in the context of the Australia-Korea FTA negotiation, when Korean business groups and community organizations have been consulted and gave their positive response the conclusion of the agreement. Such an outcome of stakeholder consultations has provided the Korean government with support and power to negotiate the interests of its society within the context of the aforementioned trade agreement.[12]
Corroborating all of the above, it can be stated that stakeholder consultations play an important role when concluding Regional Trade Agreements. However, such activities are not easily carried out in reality, as they pose certain hurdles, as illustrated by the lack of incentives, time or resources of certain stakeholders to participate in consultations or the intricacy of RTAs. Further impediments to stakeholder inclusion can be found in the unawareness of stakeholders about the possibility of participation, as well as the public’s skepticism in government’s initiatives to foster public participation.[13] Hence, for the purposes of benefitting from such stakeholder consultations, governments need to primarily address the barriers that hinder their participation in these strategic discussions.
[1] John Whalley, Why Do Countries Seek Regional Trade Agreements?, [1998],(The Regionalization of the World Economy , University of Chicago Press), 63.
[2] Corporate Finance Institute, “Regional Trade Agreements” <https://corporatefinanceinstitute.com/resources/economics/regional-trading-agreements/ > accessed 13 march 2025.
[3] World Bank Group, “Regional Trade Agreements” (April 5, 2018) <https://www.worldbank.org/en/topic/regional-integration/brief/regional-trade-agreements > accessed 13 March 2025.
[4] International Trade Council, Advanatges and Disadvanatges of Regional Agreements( RTAs) [2020].
[5] Ibid [1], (John Whalley).
[6] Kyle Robert Cote, Stakeholder Consultation in FTA Negotiations: Why Bother? – Lessons for Developing Countries (Briefing Paper, Cuts International, No.1/2016).
[7] Ibid [5], (Kyle Robert Cote).
[8] Ibid [5], (Kyle Robert Cote).
[9] Gabriel Gari, Engaging Stakeholders in Trade Policymaking – What can we learn from the USTR Public Consultation on U.S. – UK Trade Negotiations?, [2002](Queen Mary Law Research,Paper No. 380/2022).
[10] Ibid [8].
[11] Ibid [5], (Kyle Robert Cote).
[12] Ibid [10], (Kyle Robert Cote).
[13] Ibid [8], (Gabriel Gari).
