Trade Networks and Regional Trade Agreements: Insights from Network Analysis

Regional Trading Agreements (RTAs) have emerged as a cornerstone of international economic policy in recent times. Countries increasingly leverage RTAs to enhance trade flows with their partners, while aiming to secure preferential market access. At the end of 2024, 373 RTAs were in force.

However, this expansion coincides with rising uncertainties and recent global developments implying a retreat from multilateralism. Rising protectionist moves have fuelled “friend-shoring” and fragmentation of supply chains. These shifts raise doubts over whether RTAs still deliver their intended benefits.

This raises a critical policy question: do these agreements actually shape global trade patterns, or do they simply coexist with them? For a developing country like India, the answer is central to designing trade strategy, prioritising agreements, and capturing the benefits of a shifting global economy.

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