Free Trade Agreements (FTAs) can complement WTO rules and in reality, make speedier trading possible at multilateral level.
Issue for the future is to find a way to impose discipline on Regional Trading Arrangements (RTAs) to make them beneficial to the WTO system.
Union Commerce Minister, Mr Kamal Nath, said India's view has been for non-discriminatory and rule-based international trading system.
He said RTA's can help trade liberalisation and facilitate WTO's trading system.
It is accepted that RTAs are to remain and have become part of international trading system.
Speaking at the CII Partnership Summit 2006, Ian Pearson, Minister for Trade, The Foreign and Commonwealth Office, UK said according to him well planned regional agreements are necessary and does not conflict with the multilateral system.
Many WTO members carry out their economic, political, and developmental objectives, using FTAs, forming part of EU trade policy within WTO framework.
The EU has been in favour of regional trade agreements compared to others.
Regional trade within the EU has grown due to tariff and quota-free access between countries.
The Minister said RTAs with a diverse membership, low external most favoured nation tariffs, and a complete coverage of various sectors and products, have proved to be successful.
The EU was committed trade negotiations with regional groups outside Europe like Mercosur, Gulf Co-operation Council, Economic Partnership Agreements with 79 countries of the African, Caribbean, and Pacific regions, he added.
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