The WTO is a multilateral trade organization with member nations from all regions of the world. The majority are developing countries. The WTO agreements permit countries to enter into bilateral or regional trade pacts, or to create free trade areas and customs unions. Yet a free trade area only has free trade between the countries that belong to it.

1. How does the concept of a free trade area, such as theNorth American Free Trade Agreement(NAFTA) or any other regional FTA, fit into the WTO global framework? Do bilateral pacts or regional free trade areas violate the principles of nondiscrimination and MFN trade? Do they violate the spirit of the WTO, or do they actually contribute to its goals?
2. Why do you think many countries have entered into bilateral and regional trade agreements since the inception of the WTO in 1995, thus bypassing the WTO structure?