Towards Multi-lateralism
Trading to the winds
Multi-lateral trade is something where what seem like a step forward is argued to be a step back. Bilateral deals were touted as the alternative to no trade since rounds of multi-lateral trade talks often ends in disagreements - the idea that something is better than nothing. The Economist have argued otherwise, warning that these bilateral FTAs signed in Asian countries are in danger of eroding the potential of a world trade agreement.
There were theories about trade diversion and trade creation derived from bilateral or limited multi-lateral agreements and those interested can read more to understand how bilateral agreements compare badly with a global multi-lateral trading system. Unfortunately, the real world is not purely about economic costs and benefits. The other intangible costs with respect to politics and diplomatic relations.