What distinguishes a regional trade agreement from a multilateral trading system?

• A. RTAs are agreements among a subset of countries with preferential rules; the multilateral system applies to all members with common rules.
• B. RTAs are illegal under the WTO regime.
• C. The multilateral system applies exclusively to developed nations.
• D. RTAs are non-binding and informal.

Answer: (A)

Regional trade agreements bring together a subset of WTO members and grant each other preferential terms—lower tariffs, quotas, or rules of origin—creating a separate set of rules for those participating countries. The multilateral trading system, on the other hand, operates across all members under a single, universal rulebook where trade is governed by non-discrimination principles (everyone is treated the same under MFN and national treatment). So RTAs realize deeper integration only among a chosen group, while the multilateral system aims for uniform rules and access for every member.