There’s a brief article in the Hindu Business Line today about the interaction of regional trade agreements and the multilateral trading system. Two key points were made. Mr Kamal Nath, Union Commerce Minister, India, argued that regional trade agreements are here to stay as a feature of the global trading system. Mr Ian Pearson, the UK trade minister, argued that “FTAs can provide the framework to tackle non-tariff barriers in areas such standards and investment, and in encouraging conformity assessment and regulatory co-operation.”

Nath’s observation is disappointing but likely true. The only means to undo the distortions caused by preferential trade regimes is to drive MFN tariffs to zero.