Regionalism vs Multilateralism: Does Regionalism challenge Globalization or build upon it?

There is a requirement of equilibrium between regionalism and multilateralism. Regional Trade Agreements (RTA) and Multilateral Trade Systems (MTS) can be complementary or substitutes of each other, depending on the country. This paper evaluates the implications of RTAs on international trade of the Global North and Global South. Also, we will specifically study the North-South RTAs and South-South RTAs. The way in which regionalism enhances or hampers the import and export of countries in the Global South. Research on the effect of RTA on MTS and vice versa holds significance because the lack of synergy in them will result in deteriorating trade of all countries. Both of these types of economic integration have a political economic effect on each other. We will also study the implications of these agreements beyond trade and the necessity of a deeper integration. The paper will conclude with suggestions for developing countries to explore options of prospective development. We will analyze North-North, North-South and South-South agreements. Global South is discussed because these countries possess a lot of untapped potential in international markets. They are yet to make a place for themselves in international trade, they deserve. Since these countries entered the international trade community a few decades after developed countries, they still face a dilemma in prioritizing national development objectives and external commitments (Mashayekhi & Ito, 2004).