As more trade takes place on preferential terms than on most favoured nation terms, the World Trade Organisation needs to reinvent its approach towards preferential trade agreements so that the two can coexist meaningfully. While the existing transparency mechanism has had some success in this respect, the threat of marginalisation of the WTO in framing rules governing global trade still remains. Instead of binding obligations which are often breached, developing best practices or guidelines on various aspects of the PTAs stands a better chance of success. These will impose moral pressure on members to not deviate from the general approach of the WTO membership.
