Rivalry and Supportiveness of Multilateralism and Regionalism in Trade

This thesis contributes to international trade theory by providing theoretical and empirical background for regional and multilateral trade liberalisation. The first part of the thesis deals with the relationship between regional and multilateral trade liberalisation and the rules of the WTO for establishment of trade agreements. The literature review of relevant theoretical and empirical studies concerning this topic is also included. The second part of the thesis provides a case study on North American Free Trade Agreement as a basis for empirical assessment of the effects of regional agreements on its non-members. To evaluate the changes in structure of trade of NAFTA members and non-members, the thesis relies on partial equilibrium model of Francois and Hall modelled in two scenarios. Finally, both scenarios are evaluated and linked to the multilateral system of the WTO and to the current situation of NAFTA and international trade.