As a WTO member a country attempts to strike bilateral trade deals to augment the baseline trade schedules agreed at the WTO (IIUC).
I read that sectoral free trade agreements (FTAs) are prohibited by WTO under MFN rules [1]. Is this true?
So, can there be a sectoral FTA? I.e. tariff-free trade in one or a few sectors, or for some companies • NO! • Contravenes MFN principle • Not covered under GATT Article XXIV/GATS Art V • Potentially violates WTO rules on subsidies (SCM Agreement Articles 3.1, 6.1 a and b) • Canada – Autos (2000)
If so, how, for example, is the Japan/EU FTA permitted by the WTO given that tariffs remain on some goods under that deal.
Finally, as a WTO member does a country need to “log” or register with the WTO the FTAs it makes?
Refs
[1] Slide 6, http://blogs.sussex.ac.uk/uktpo/files/2017/03/WTO-rules-UK-EU-FTA.pdf