It's been almost a year since President Trump opened a new chapterin the US’s economic history, dubbed “Liberation Day” by his administration,when he unveiled sweeping tariffs on dozens of countries.

Since then, the administration’s aggressive trade policy – withthreats of levies ratcheting up into triple‑digit territory – has strainedrelationships with longstanding allies and unsettled the rules‑basedinternational trading system the US once championed.

In response, U.S. trading partners have begun pursuing alternativestrategies to limit the economic fallout. Among them is a renewed push forregional trade agreements (RTAs), such as the EU and India striking the “motherof all deals” last month and the trading bloc’s similar agreement withMercosur.  

Trump continues to justify tariffs as a national security measure,in doing so, exposing loopholes in World Trade Organisation rules to sidestepcore principles – while technically remaining within the system. 

The consequences are serious: they weaken the very foundations ofthe multilateral trading system that relies on non-discrimination, predictablerules and the gradual liberalisation of trade through negotiation rather thancoercion.

Many countries are now seeking to diversify trade ties and reducedependence on the U.S. market, prioritising partnerships with economies thatcontinue to uphold WTO norms and support open trade.

Some analysts note that the surge in regional trade agreementsreflects a long‑running global trend as governments look for progress outside astalled WTO negotiating agenda. 

However, Trump’s “America First” protectionism appears to beaccelerating the shift: countries seeking a more open trading environment – andlooking to offset the impact of US tariffs – are likely to deepen cooperationthrough new, more innovative regional agreements.

Five key types of RTAs

According to the WTO, RTAs are any reciprocal trade agreementsbetween two or more partners, not necessarily from the same geographicregion.In descending order of economic integration, here are the main types ofRTA: 

• Economic Union: The “fullest” RTA form incorporating a common market and customs union. Members seek to operate as a single economic bloc
• Common Market: A looser RTA form with many similar features, including a common market and customs union, but stopping short of the degree of policy alignment necessary for an economic union
• Customs Union: An RTA form confined to the free cross-border movement of goods between members and the adoption of common external tariffs and customs measures at the union’s external border 
• Free Trade Agreement, Area or Association: Agreement to eliminate most trade barriers between members, but where there is no common external tariff or policy in relation to non-members
• Preference Schemes/Programmes: Typically unilateral, non-reciprocal market access schemes/programmes focused mainly on selective tariff relief for developing countries’ goods.