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countries are increasingly using preferential trade arrangements to liberalize trade and in this video we're going to take a look at some of the background information surrounding these preferential trade arrangements have three parts one is to define the terms that are used in this in this context and to also bring up some of the issues associated with different types of PTAs including transhipment and the very complicated set of rules of origin that are particularly important with FTAs the free trade agreements and also to outline some of the GATT rules surrounding PTAs so when we talk about a PTA me first make clear that this is a an exception to the core WTO principle of MFN countries some countries are treated being treated better than other countries contrary to the MFN status of the WTO where everybody is treated the same so there are going to be increasing levels of integration associated with these PTAs the the first one at least in the textbook definition this is so-called f...