Regional trade agreements(RTA) are likely to increase as countries will look towards forming coalitions to safeguard interests in the wake of the downturn.
"Currently, there has been a coordination failure as countries have not been able to work it out together, and the trend has been towards bilateral agreements.", Abhirup Sarkar, professor of economics at the Indian Statistical Institute told Business Standard.
Talking on the sidelines of an Indian Institute of Foreign Trade(IIFT) conference, Sarkar said that the downturn might lead to countries resorting to high tariff regimes, something on the lines of the beggar-thy-neighbour policies that were based on competitive devaluations during the Great Depression in the 1930s.
