SWIMMING IN THE SPAGHETTI BOWL: CHALLENGES FOR DEVELOPING COUNTRIES UNDER THE "NEW REGIONALISM"

Simultaneous developments in the WTO system and under regional integration initiatives are dramatically changing the trading environment for developing countries. The interface between these processes brings new and enormous challenges for those countries, with profound implications for their development prospects. These arise from key features of the "new regionalism", which reaches far beyond borders. Further challenges arise from the interface between developments in the WTO system and the new regionalism. A particular concern is the issue of preferential liberalization of trade in services, including the compatibility of the new regional integration agreements with the provisions of GATS Article V.